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The Chandigarh administration has approved an increase in the Floor Area Ratio (FAR) for group housing projects, aimed at reducing per-unit housing costs and improving affordability in the city. The decision, cleared in the past week, allows higher construction density, including permission for additional floors in select developments such as the Sector 53 housing scheme. The revised FAR, increased from earlier limits, is expected to enable developers to build more units on the same land parcel, thereby distributing land costs across a larger inventory. The move aligns with the Chandigarh Master Plan framework and follows concerns over high housing prices and limited supply. The policy also introduces caps on ground coverage and building height to maintain planning controls while facilitating higher-density development.
The Chandigarh administration approved an increase in the Floor Area Ratio (FAR) in the past week for group housing projects, with the objective of improving housing affordability by enabling higher-density development and optimising the use of limited urban land.
The decision applies to projects undertaken by the Chandigarh Housing Board (CHB), including the Sector 53 housing scheme, where the permissible FAR has been raised from 1.2 to 2.4. The revised norms also allow construction of up to six floors, compared to earlier restrictions, thereby increasing the number of dwelling units that can be developed within the same land parcel.
Officials indicated that the increase in FAR would allow developers to distribute land costs across a larger number of units, potentially lowering the per-unit price for buyers. The move comes in response to persistently high housing prices in Chandigarh and limited availability of developable land, which have constrained affordability for a significant segment of homebuyers.
The Sector 53 project has faced delays and pricing challenges since its initial launch, with earlier estimates placing apartment prices between INR 74 lakh and INR 2.3 crore, depending on unit size. Demand, however, has remained strong, with a recent demand survey receiving over 7,000 applications for a limited number of flats, indicating underlying end-user interest despite elevated pricing levels.
The revised FAR framework is aligned with provisions under the Chandigarh Master Plan (CMP-2031), which allows calibrated increases in density while maintaining planning controls. Under the updated norms, ground coverage has been capped at 40%, and maximum building height has been defined to ensure that infrastructure load, environmental considerations and urban design parameters remain within permissible limits.
The administration's decision reflects a shift towards vertical development in a city with limited scope for horizontal expansion. By allowing additional built-up area, the policy aims to improve the financial viability of housing projects and attract developer participation, particularly in schemes where high land costs have previously affected pricing and uptake.
The move also comes amid broader concerns over housing affordability in the Chandigarh region, where court observations in recent months have highlighted the rising cost of residential units and the need for policy interventions to ensure accessibility for middle-income households.
Officials indicated that similar FAR relaxations may be considered for other land use categories, including industrial and commercial developments, although heritage zones will continue to remain subject to stricter controls under existing regulations.
The implementation of the revised FAR norms is expected to support ongoing and upcoming housing projects by increasing supply, while maintaining regulatory oversight on building parameters. The administration is likely to monitor the impact of the policy on pricing and project execution as part of its broader housing strategy.
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