The Real Estate Forum (REF) on Friday expressed strong resentment over reduction in the Floor Area Ratio (FAR), which is a building’s total floor area to the size of the piece of land upon which it is built, and the ‘ambiguous’ Transferable Development Rights (TDR), which is given to land owners on transfer of land.
The REF members stated that while the FAR reduction would make property costlier, the TDR would discourage land owners to transfer land as they are not sure what benefits to get in future.
“The TDR doesn’t give any compensation to land owners but a mere certificate for future use, which has not been defined at all. Similarly, the FAR base reduction from 1.2 from 1.5-2.75 will create a permanent problem for individual homemakers to fulfill their space management,” said REDA president Shantilal Patel.
The Real Estate Forum consisting of the REDA, The CREDAI, Odisha, the NAREDCO, the AFORD and the IIA organised a Press meet over BDA’s notification issued in this regard.
The TDR has lots of ambiguity and the system would subject the landowners to great harassment, said CREDAI Executive Body member DS Tripathy.
Architects, designers cannot calculate the height of the building, structure, area unless until the customer provides details about the availability of the TDR. Otherwise, they would be forced to design on base FAR and then change the design after receiving the TDR, he added.
Further, the TDR is valid only for five years and can be subsequently renewed for another five-year term. However, there is no clarity on what happens after the 10-year term both on the status or value of the policy, rued Tripathy.
Association for Real Estate Development president Umesh Patnaik chaired the meet.