Karnataka has raised the floor area ratio (FAR) in KIADB‑notified zones to up to 5.2 through premium payments, allowing significantly taller and denser developments. Plots on roads wider than 30 m can now reach 5.2 FAR, up from 3.25; 24–30 m roads up to 4.8, 18–24 m up to 4.0, 12–18 m up to 3.6, and even narrower roads up to 2.8 FAR. This change unlocks large‑scale industrial, logistics, data‑centre, office and residential projects across Bengaluru’s industrial corridors.
By increasing permissible built‑up area, developers can achieve higher land‑use efficiency, reduce the need for large land parcels, and improve project economics. Better land utilisation is expected to stabilise land prices in emerging micro‑markets, accelerate project launches, and attract institutional investors and large occupiers seeking scale. The higher FAR also enables vertical factories, multi‑level warehouses and integrated townships, creating stronger employment clusters that will spur housing and retail development.
In the short term, residential impact will be limited to KIADB‑notified industrial estates, but over time housing demand may shift outward as jobs and infrastructure grow around these clusters, potentially leading to well‑planned townships near industrial zones.
