The Haryana Cabinet has given its approval to an amendment to the state’s Retirement Housing Policy to increase the permissible Floor Area Ratio (FAR) for retirement housing colonies from 2.25 to 3.0 through Transferable Development Rights (TDR). The move is likely to improve project viability for developers and boost the organised senior living segment, especially in Gurugram.
The amendment was passed in a Cabinet meeting chaired by Chief Minister Nayab Singh Saini. The government said the revised provisions are to cater for the ageing population and changing housing and lifestyle needs of senior citizens.
As per the new norms, developers of retirement housing projects will be allowed additional FAR through the TDR mechanism up to 3.0 as against the earlier cap of 2.25. The benefit will apply only to licenses pursued under the policy of October 20, 2020 and any subsequent amendments, officials said.
Real estate experts said the increased FAR would allow developers to build more on the same land parcel, making projects more feasible without a proportionate increase in land acquisition costs. Industry stakeholders expect the move to hasten the supply of organised senior living projects across NCR markets, particularly Gurugram, where demand for retirement housing has been rising steadily.
Higher FAR will help premium senior living projects in Gurugram to be commercially viable, said Santhosh Kumar, Vice Chairman, ANAROCK Group. “The amendment reflects the change in perception that retirement housing is essential social infrastructure and not a niche real estate segment,” said Muralidhara C P, founder of Jeevin Consulting.
The representative from the industry further commented that through this new policy, it could ensure that there was a more structured pipeline of retirement housing projects with good support mechanisms and infrastructure facilities in the community for elderly people. Rajagopal G, Chairman, ASLI stated that this new amendment will make sure that senior living projects will become much more viable, as well as help develop the organized retirement housing sector.
According to developers, Gurugram had seen increased demand for such retirement communities as families are increasingly viewing such housing solutions as an integral part of their lives rather than resorting to them out of necessity. Developers argued that the new FAR regulations would allow them better scope for building integrated developments.
The Transferable Development Rights (TDR) process involves transferring unused development capacity from one piece of land to another. The amount of total development area to be constructed on a given piece of land is defined by FAR. The new limit of 3.0 will allow more construction to occur within the same piece of land and will make retirement housing projects viable.
