CHENNAI: After Chief Minister Edappadi K Palaniswami’s announcement that floor space index (FSI) has been increased from 1.5 to 2 for all types of buildings in the State from October, the real estate industry is cautious in welcoming the move and hopes that it could be a success only if the Tamil Nadu Combined Development Regulation (TNCDR) and Building Rules, 2018 is implemented.
The Confederation of Real Estate Developers Association of India (CREDAI) executive member and vice-president of Newry Properties S Sridharan told Express that increasing the FSI from 1.5 to 2 for special buildings was a welcome move as it would increase the housing stock, but then the issue was the need for a framework so that builders can make use of the FSI increase.
He said that under the present rules,the building height could not be increased beyond 17 metres and once the Tamil Nadu Combined Development Regulation is implemented, then the extra FSI could be utilised.
FSI rules are implemented to limit the amount of floor area that can be built on a given plot of land. For instance, say, an FSI of 1 allows one floor of 100 sq ft to be built on a 100 sq ft plot of land, or two floors of 50 sq ft each on that same land. An FSI of 2 allows 2 floors of 100 sq ft on the 100 sq ft of land, or 4 floors of 50 sq ft on that same land.
Indian cities have some of the most restrictive FSI regimes in the world. For instance, Mumbai has a maximum free FSI of 1.33 in most of the island city. Chennai has a maximum free FSI of 1.5 and Bengaluru 3.25. By contrast, Hong Kong and New York City have a maximum free FSI of 12 and 15 respectively in their central business districts.
Interestingly, builders are also ruing that landowners, while forming a joint venture, would seek additional money, based on the calculation of FSI wherein the benefit could not be passed to customers.
A Shankar, Chief Operating Officer, Strategic Consulting, India and Sri Lanka, Jones Lang LaSalle, a financial and professional services firm that specialises in commercial real estate services, says that the increase in FSI will mean one can build more in the same land and hence it will have a direct impact on the property prices.
“This increment will make the housing stock go up and hence it will be affordable if the additional FSI benefit in terms of price is passed on to the buyers. More developments will happen without further expansion of the city, which means the commute time will reduce,” he added.
However, the major concern is the carrying capacity of infrastructure whether it’s adequate to support the higher density. Already the infrastructure status, be it social or physical, is not adequate in many areas. This will further put pressure on the infra requirement, says Shankar.
Increase in the FSI along with augmentation of infrastructure will be a win-win situation. A just increase in FSI will end up in more congestion and dearth in quality infrastructure, he says.
A former planner said that there is a need for scientific study before coming out with such announcements. “The government should look at variable FSI rather than agreeing to a common FSI of 2. Similarly, setbacks should not be relaxed,” he added.