Press Meet by Real Estate Forum Odisha
Bhubaneswar: The drastic reduction of base floor area ratio (FAR) to 1.2 from earlier 1.5 to 2.75 in the newly notified Odisha Transferable Development Right Rules, 2015 is likely to soar up real estate property rates by 30-35 per cent in Odisha, realtors says.They have red flagged the reduction of FAR , the ratio obtained by dividing total covered area on all floors by the area of the plot, in the rules.
"The sector is going through recession and we are trying hard to sell the properties. The prices of the properties will be surging by 30 to 35 per cent due to the reduction of FAR. It will result in investors moving to other states", said D S Tripathy, governing council member, Credai (The Confederation of Real Estate Developers Association of India) told media persons.
The Real Estate Forum, the umbrella body of four real estate associations of the state and Odisha chapter of Indian Institute of Architects opposed the new rules. The Transferable Development Rights (TDR) rules are introduced by the government as a route for compensation against land acquisition.
"The population density per square kilometer is low in Bhubaneswar at 2,131 compared to other major cities and hence, there is no justification of lowering the FAR. The FAR here is lowest compared to big cities with higher density. It is also against the spirit of housing for all", he added.
While the chief minister is keen to take the state among the top three start up destinations, the reduction will discourage the young minds in taking up real estate business , he added.
Realtors says the lowering of FAR will spell disaster for them unless the TDRs are not generated by promulgating any scheme in the cities. The delay in generation of the TDR will create a demand supply gap in the market, they opined.
They accused that the government has notified the scheme hastily without consulting the stakeholders.
"It is a regressive step. The reduction could have been digested if it could have been done over the years. FAR should be kept intact i.e 1.5 to 2.75 and the realtors should have been given a free hand to consume the TDR over and above the existing rates", said Kantilal Patel, President, Real Estate Developers Association of Odisha (REDA)