Sky is not the limit for Hyd realty, but infra is

The FSI number defines the maximum floor space area that can be built in a site with respect to the plot area. While the national average FSI is 2-2.5, there is no FSI cap in Hyderabad. The developers in other cities cannot construct more than 2.5 lakh sq ft on 1 lakh sq ft of land, but no such limit here

Changing Skyline

• National avg FSI is 2-2.5
• No FSI cap in Hyd
• Rising pressure on infra
• Buyers need to be careful on pre-sales
• Inventory pile-up likely amid growing skyscrapers

Hyderabad:Hyderabad is the only city in India where there are no restrictions of floor space index (FSI) and it is considered as a boon to the real estate market here. The unlimited FSI norm has totally changed the landscape in the western part of the city. However, it could be a bane in the future as there would be several long term repercussions over regular life of residents.

The FSI is the ratio of a building’s total floor area to the size of the piece of land upon which it is built. The number basically defines the maximum floor space area that can be built in a site with respect to the plot area. While the national average of FSI is 2-2.5, there is no FSI cap in Hyderabad. The developers in other cities cannot construct more than 2.5 lakh sq ft on 1 lakh sq ft of land, but no such limit here. The FSI limit varies based on the city, location, type of building, and plot size. Beyond the permissible construction limits, the land in the project must be kept open for greenery and other purposes. As there are no such restrictions for the projects in Hyderabad, the FSIs are being recorded above 10. It means the FSI in this city is 3-4 times more than the national average of 2-2.5.

Though the unlimited FSI is nearly a two-decade-old government policy, it has come to the limelight these days due to the mushrooming high-rise buildings across the city, especially in West Hyderabad. Being close to the IT corridor, many commercial and residential projects are coming up here with an average FSI of 8-10, and this could be detrimental to dwellers of the city in days to come.

Once all these skyscraper projects are completed and occupied by the residents, West Hyderabad will be congested to commute. Not only the West, but the high-rise buildings are being constructed in other parts also. According to the real estate experts, the city must have more infrastructural developments to cater the needs of the next generations. Else, they tend to get into trouble.

“The governments have to spend maximum funds on the infrastructure to match with the high-rise projects. If the FSI is increased without creating the infrastructural facilities in the vicinity, the residents will experience problems,” Niranjan Hiranandani, Co-founder & MD of Hiranandani Group, and Chairman of the National Real Estate Development Council (Naredco) told Bizz Buzz.

He suggested that the government should reduce the FSI in the locations where there is no enough infrastructure such as power/ water supply and roads. He also asked the developers to construct high-rise buildings in peripheral areas of the city so that the government can extend the infrastructure for the growing urban population.

The branded developers across the country are looking towards Hyderabad to expand their ventures. Other State governments are also keen on the developments taking place in Telangana. The teams from Maharashtra and West Bengal have recently come to study Hyderabad’s growth story. Very soon, the MSME developers from all over the country are coming to the city to identify the opportunities here. “In the last five years, the Hyderabad skyline has changed completely. Its population is ever increasing owing to massive migration of people from other cities and towns. The tall buildings will lead to rapid urbanisation and further transformation,” said Gummi Ram Reddy, CMD of Ark Group and National Vice President of the Confederation of Real Estate Developers Association of India (CREDAI).

He said, “The growing urban population could be a big burden on the city infrastructure. The State government must have more focus on the infrastructural facilities of the city. It should take futuristic steps like creation of convenient public transportation and wider roads & bridges. The residents may face numerous challenges if such facilities are not provided.”

Ram Reddy said home buyers must consider the infrastructure available in the surrounding areas of the project before making any property purchase decision. He also urged the people not to believe pre-launch sales. He further cautioned the developers as well as the investors to observe the global recessionary trends as there may be an inventory pile-up with growing number of skyscrapers.

“Observing the huge demand of high-rise projects, many builders who don’t have experience in constructing tall structures are selling the units under pre-launch schemes. It is not easy to erect a 30-40-floor building. The buyers must track the previous projects of the builder and take a well-informed decision,” he added.