FAR benefits for Metro at 60% of guidance value

Q: The state government has fixed the premium floor area fee payable by property owners/builders along the 500-metre radius of Namma Metro. Why so?

Manjula Rao, Bangalore

14th April 2015

Real estate News in Bangalore

bangalore metro

floor area ratio

namma metro

guidance value

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Replies (2)

It is really very confusing :( How this premium floor area fee at 60 percent of the guidance value per sqft or per floor area ration is calculated?

Manjula Rao, Bangalore

14th April 2015

Comment

The guidance value of parts of Indiranagar falling in the radius of 500 metres from Metro is Rs 20, 000/sqft. The existing FAR is 2. With the betterment of premium floor area ratio of 4, development or even redevelopment can increase to an additional 2 FAR and build 20, 000 sqft more.
Coming to the payment part, 60 % of the guidance value of Rs 20, 000/sqft is Rs 12, 000. When calculated at Rs 12, 000 on the additional 20, 000 sqft the builder received, it comes to Rs 24 crores. It's 10 % of residential properties and 20% of commercial properties is calculated on that.

Armaan Saxena, Bangalore

15th April 2015

Yeah actually the state government has fixed the amount payable by property owners or builders along the 500 metre radius of Namma metro network who would be benefited by additional build-able space. The premium floor area fee at 60 percent of the guidance value per sqft or per floor area ration.

Dharmesh Shukla, Bangalore

14th April 2015

Comment

The government wanted to monetise the benefit obtained by builder/ developers and property owners from the extra build-able rights. It had set 10% for residential properties and 20% for commercial properties. It was decided by the state government not to levy the fee on the entire 100% of the property value but on just 60% of the bandwidth.

Armaan Saxena, Bangalore

14th April 2015