3 Ways In Which Building Roads Will Help Developers In Gurgaon
As grows to be the most popular choice among home buyers and real estate developers in the National Capital Region (NCR), authorities strive to keep up with the pace of real estate development in the city. However, while a City Masterplan 2031 in place, the pace of development in the state has been lagging. A key challenge that the authorities have been facing is acquiring land.
To solve this problem, the Haryana state government recently decided to allow private builders to directly acquire land from farmers and build roads in city sectors. For this, the Haryana Urban Development Authority will allow higher floor space index (FSI) to the developers. FSI is the ratio of a building's total floor area to the size of the piece of land upon which it is built.
How will this help developers?
A higher FSI to developers would mean that if a developer builds 1,000 square meters of roads, he gets an additional 875 sq mt built-up area in his project, bringing the benefit to 0.875. This may help developments in newer areas like South Gurgaon with massive projects plans.
The livability index of an area depends on its access to roads and other amenities that are available during possession of a home. Being responsible for roads will give developers a better hand at delivering better project.
In spite of quick execution in many areas, buyers tend to take the rate of infrastructure development with a pinch of salt. This, in turn, reflects on the demand and prices of the homes in Gurgaon. With this uncertainty gone, developers will be able to launch new projects with much more ease.
The added responsibility
The FSI advantage will also come with additional costs and efforts. Not only will the developers be required to acquire the land, they will also have to hire a sub-contractor to build the road. If they decide to build it themselves, they will have to hire extra equipment along with the labour.
The sector roads will also have to be congruent to the specifications decided by the authorities which requires, time and effort. Hence, not much of this benefit is expected to flow down the consumers. So, this may not have an overall impact on the prices of new properties in Gurgaon.