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India heads for real estate space crunch

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India heads for real estate space crunch

Last updated: April 21 2008
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  • India heads for real estate space crunch

    Floor space index (FSI), which limits the amount that can be built in a certain area, is headed skywards in most parts of India - indicating a shortage of real estate space.

    According to consulting firm HVS international, cities like Hyderabad have set the FSI for some projects to 5, reflecting the pressure created by the rising cost of land.

    In India, FSI does not typically exceed 1.33 to 3.75. In Delhi, FSI is typically about 1.75 for most projects.

    One major consequence of the skyrocketing land prices is that the land cost is higher than 50% of the total project cost. In most Western countries, the land cost does not exceed 15 to 20% of the total project cost.

    Another consequence of the low FSI and high land cost is that now we are seeing more and more mixed land use. Many cities like Bangalore and Noida have hotels coming up above or within malls - making use of the FSI allowed for retail and hotels at the same time.

    -Financialexpress
  • #2

    #2

    Re : India heads for real estate space crunch

    Yes in the coming time level all places will be levish with lot of level like all place have small types with full of places.Mostly development are going on full swing at all the places which in the coming future time no place will be available in Delhi/NCR level.

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