Independence Day special: Can The Abolition Of FSI Lead To Affordable Housing For All?

As India marks its 75th anniversary of independence on August 15, 2022, News investigates what freedom means to various stakeholders in India’s real estate.

Freedom is a luxury, and various individuals define it differently. Stakeholders in Indian real estate have their own set of terminology as well. While freedom may imply owning a home at a reasonable price for a home buyer, freedom from various obstacles – single-window approval, industry status, simple finance, and, most significantly, FSI-free developments – may be the goal for developers.


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What does it mean to be “free from FSI”?

Freedom from FSI implies that builders may make the most use of available land parcels without being constraine by FSI regulations, which might translate into cheaper homes in and near city centres for house purchasers.

The floor space index (FSI) is also known as the FAR (floor area ratio). The permitted development rule by various government agencies and local governments is FSI, which is compute as the total floor area of each floor in relation to the total size of the piece of land.

Every city in India has its own FSI regulation, which ranges from 1.5 to 3.75, with Hyderabad being the only city in the country with an unlimited FSI. As a result, urban planners point out how the municipal infrastructure is under enormous strain in the old south Indian metropolis, with congestion, concrete jungles, and no effective drainage systems.

The question is whether the elimination of FSI will truly revolutionise the housing market and result in surplus homes. Opinions vary throughout the world, and there is discussion about whether urban housing should be concentrated in and near CBDs with flexible FSI regulations, which may put strain on infrastructure. Otherwise, strategies should be geared at vast horizontal city expansion, which would require more resources to develop outside city bounds.

Since India’s urban housing has always been prone to building a concrete urban jungle, experts in India disagree on the Hyderabad model of independence from FSI. Furthermore, analysts point out that.  Despite being an FSI-free city, property prices in Hyderabad have increased faster than in Bengaluru or Chennai. Refuting the premise that removing FSI will result in the provision of more affordable homes in the country’s metropolitan regions. Demand for houses in Hyderabad has also shifted to the Gachibowli IT corridor.


There are several questions to which the country’s urban planners must go further to find answers:


  • ·        Is FSI-free real estate development a good or terrible idea?
  • ·        Is there anything to be learned from an FSI-free city like Hyderabad?
  • ·        What is the optimal FSI and density standard for urban development?


Independence Day special: The Benefits of Unlimited FSI

 independence from FSI may not bode well for real estate. The FSI is an important component of the sector since it specifies a predetermine number of dwellings to be develope in a planned way in order to control costs, the plot’s capacity to contain the property, and so on. He believes that failing to apply FSI standards will harm the city’s fabric in the long term.

“An already space-constrained metropolis like Mumbai would suffer further strain on basic infrastructure as well as a shortage of green and open areas.” In the absence of FSI, cities may experience uncontrolled or haphazard urban design and development. Which can jeopardise project safety, raise variable costs, and cause infrastructural difficulties. FSI is an important aspect in the real estate market for assisting in the development of a well-planned, developed city. Hyderabad established free FSI to foster the expansion of the city’s real estate sector. However, it is equally critical to consider the issues that this may bring to the city,” 


Independence Day special: Concerns about FSI freedom 

Feels that the notion of FSI independence is a wonderful idea. But authorities must assure greater regulation and a well-defined schedule for projects. Some projects have been noted to be purposely delay in expectation of additional FSI chances from the government. The regulations must be transparent, and we must move away from FSI.

“At the same time. The Town and Planning Department of each city where FSI opportunities are available must take a proactive role in determining the criteria that result in timely project delivery while minimising undue strain on municipal infrastructure.” The FSI and density criteria for city development are determine by the city’s Master Plan. To prepare for the municipal infrastructure necessary in conjunction with FSI requirements. Factors such as land availability and anticipated objectives are taken into account.”A universal, one-size-fits-all FSI and density criteria cannot be apply to different cities and localities.”


Independence Day special: What is the optimal FSI limit?

The optimal FSI cannot be calculate since it varies by area. It should be decided with expansion, infrastructure amenities, open spaces, and green cover in mind. Density standards in town planning of a certain location involve numerous characteristics such as economic, social, physical, environmental, and constructed structures, among others.

The commercial development in Hyderabad, which includes IT parks, data centres. And commercial spaces, was create with a high FSI ratio. As a result, the newly established sites saw a large influx of individuals occupying these areas. It resulted in increasing strain on the city’s existing municipal infrastructure, such as roads, sewerage, and power. The fundamental learned from Hyderabad’s expansion has been that the government must guarantee. That civic infrastructure is capable of managing increased traffic while being free of FSI.

Property prices, demand, and supply of housing in any particular city are not solely determine by supply, or affordable supply. Rather, it has a vital relationship with the local economy and labour market. It is therefore suggested that removing FSI will result in more turmoil and unplanne expansion of India’s metropolitan centres rather than generating cheap housing for the populace.





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Disclaimer: The views of this expressed above are for informational purposes only based on the industry reports & related news stories. does not guarantee the accuracy of this article, completeness, or reliability of the information & shall not be held responsible for any action taken based on the published information.
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