Bengaluru Opens Premium FAR Window as Greater Bengaluru Authority Projects ₹2,000 Crore Annual Revenue

Bengaluru’s urban development framework has entered a transformative phase with the Greater Bengaluru Authority officially opening applications for premium Floor Area Ratio. This move comes nearly eight months after the government notified the policy and follows a recent High Court decision that upheld the amendments and cleared legal barriers. With the framework now operational, the authority expects the premium FAR mechanism to generate close to ₹2,000 crore annually across its five municipal corporations.

Under the new system, builders can obtain additional FAR by paying a premium equivalent to 28 percent of the guidance value. The amount of extra FAR available is linked to the width of the road adjoining the property, ensuring that intensified development is supported by sufficient infrastructure capacity. This structured approach is aimed at balancing real estate growth with responsible city planning while bringing transparency and predictability to development approvals.

The premium FAR concept was first proposed in March 2024 through a draft amendment to the Karnataka Planning Authorities Rules. At the time, the government sought public feedback, leading to a range of responses. Supporters, including senior officials and Karnataka RERA members, believed that the policy could address widespread unauthorised additional floors and catalyse redevelopment in ageing neighbourhoods. Critics, however, raised concerns regarding equity, affordability and the potential misuse of the mechanism.

With the High Court dismissing challenges to the policy, the Greater Bengaluru Authority has moved swiftly to implement a streamlined process. Municipalities will now assess and communicate payable premiums during building fee intimation, enabling developers to incorporate premium FAR directly into their planning submissions. Approvals will be granted once all required charges are paid.

Urban planners suggest that this policy could reduce reliance on Transferable Development Rights and introduce a more stable and predictable planning environment. As Bengaluru continues its dual growth pattern of outward expansion and increasing vertical development, premium FAR is expected to play a crucial role in supporting sustainable redevelopment, boosting government revenue and improving land utilisation across the metropolitan region.