Unlimited FSI Crippling Hyd’s Infra

Unlike cities like Mumbai, Singapore, or New York - where limited land drives vertical development - Hyderabad enjoys an enviable geographic advantage with abundant land reserves and a 169-km Outer Ring Road (ORR) encircling the city. Yet, instead of leveraging these resources for planned horizontal growth, the city has opted for unrestricted FSI across its expanse. The result has been a rapid and often chaotic urban sprawl

Hyderabad, once known for its timeless charm and sprawling nawabi estates, is now synonymous with glittering high-rises and a booming IT sector. The city’s skyline has become a canvas for architectural ambition, fuelled by an unrestricted Floor Space Index (FSI) policy that allows developers to build vertically, almost anywhere. But as the towers rise, so do questions about infrastructure, sustainability, and the very livability of this rapidly urbanizing metropolis.

Unlike cities like Mumbai, Singapore, or New York - where limited land drives vertical development - Hyderabad enjoys an enviable geographic advantage with abundant land reserves and a 169-km Outer Ring Road (ORR) encircling the city. Yet, instead of leveraging these resources for planned horizontal growth, the city has opted for unrestricted FSI across its expanse. The result has been a rapid and often chaotic urban sprawl that is pushing Hyderabad’s infrastructure to its limits and creating a fragmented urban experience.

The appeal of unrestricted FSI is obvious: it allows for taller buildings, greater land utilisation, and the promise of economic prosperity. Developers have flocked to areas like Hitec City, Financial District, Gachibowli and Kokapet, where glittering skyscrapers symbolize the city’s booming IT economy. These developments have attracted multinational corporations, a growing workforce, and a significant influx of wealth. But the cost of this vertical ambition is becoming hard to ignore.

FSI serves as a vital urban planning tool globally, regulating density to align with infrastructure capabilities. Cities such as Mumbai and Singapore apply FSI selectively, promoting high density in areas with robust public transit and utilities. In Mumbai, high FSI is concentrated in zones like Bandra-Kurla Complex (BKC), supported by strong transport links and utilities.

Similarly, Singapore aligns high-density areas with MRT (Mass Rapid Transit) corridors, ensuring vertical growth is matched by efficient connectivity. However, Hyderabad lacks such a strategic approach, permitting developers to build indiscriminately without considering infrastructure readiness.

This lack of planning has led to significant challenges. Hitec City and Gachibowli, once suburban hubs, now face severe traffic congestion as roads designed for lower populations struggle to cope with rapid urbanization. Commute times have dramatically increased, with peak-hour travel often exceeding an hour. The city’s vehicle population, growing at an annual rate of 10 per cent, now exceeds 7.8 million, while road infrastructure expands at less than four per cent annually. Unlike cities like Tokyo and Singapore, which synchronize high-density zones with extensive metro networks, Hyderabad’s metro covers only 69 kilometers, leaving most residents reliant on private vehicles. The strain extends to essential resources. Hyderabad’s water demand has surged by 60 per cent, forcing residents of high-rise developments to depend on private water tankers. The sewage systems, designed for much lower densities, frequently overflow, creating environmental and sanitation issues.

Unregulated FSI has also deepened socio-economic divides. Luxury high-rises dominate new developments, with 70 per cent of projects catering to high-income groups. Affordable housing is pushed to the outskirts, sidelining middle- and low-income families. Public spaces and green areas are often sacrificed for maximized construction, leaving residents with limited access to community infrastructure and green amenities.

Unlike land-constrained cities like Mumbai or Singapore, Hyderabad spans over 650 square kilometers, with vast underutilized areas along the ORR. These areas could be transformed into planned suburban zones featuring affordable housing, green spaces, and efficient transport links. Instead, the focus on unregulated vertical growth has resulted in an imbalanced skyline, marked by inequality and strained infrastructure.

In comparison, Mumbai restricts high FSI to commercial hubs like BKC, maintaining lower FSI in suburban zones for better livability.

Singapore’s high-density projects integrate mandatory green spaces and public amenities, while New York’s skyscrapers are concentrated in well-connected zones like Midtown and Lower Manhattan. In contrast, Hyderabad’s lack of zoning discipline has allowed unchecked vertical sprawl, exacerbating its urban challenges.

The cracks in Hyderabad’s unplanned growth model are becoming harder to ignore. Feeder roads are choking with traffic, public utilities are buckling under demand, and the city’s residents are facing longer commutes, higher costs, and dwindling access to green spaces. While the city’s skyline continues to rise, its streets, services, and livability are under immense strain.

Hyderabad’s unrestricted FSI policy has driven undeniable economic growth and investment, but at what cost? With its abundant land, the city has a rare opportunity to rethink its approach and develop a more balanced urban model. The question is, will Hyderabad’s planners and policymakers act in time - or will the city’s ambition overshadow its need for sustainability and livability?

For now, the towers rise, but so do the questions.

(The author is Chairman of National Realtors Association India (NAR-India))