Boost FSI to Accelerate Urban Redevelopment in Gujarat

The real estate industry in Gujarat is urging the state government to adopt higher Floor Space Index (FSI) and Transferable Development Rights (TDR) for redevelopment projects, inspired by the successful model in Maharashtra.

FsiRedevelopmentGujaratReal EstateTdrReal EstateJan 20, 2025

Boost FSI to Accelerate Urban Redevelopment in Gujarat

Real Estate:As the Gujarat government prepares to announce new jantri rates, there is a growing demand from the real estate and associated industries for improved Floor Space Index (FSI) benefits to make housing more affordable.
High expectations are building, particularly following an optimistic statement from Gujarat Chief Minister Bhupendra Patel about a positive revision to the jantri.
Industry stakeholders are urging the government to also consider increasing the FSI for redevelopment projects.
Currently, around 400 redevelopment societies are awaiting the government’s announcement.

The state government has set a deadline of January 20 for stakeholders to submit their recommendations and suggestions.
After this, authorities will review the inputs and decide on necessary changes to the draft jantri recently released.
The Gujarat Institute of Civil Engineers and Architects (GICEA) and the Gujarat Chamber of Commerce and Industry (GCCI) recently hosted an event focused on urban renewal through redevelopment and regeneration.
The event drew comparisons with policies from Maharashtra and Gujarat, addressing challenges, benefits, and sustainable strategies.

Experts argue that redevelopment is crucial to promoting vertical development within the existing infrastructure.
However, many societies and developers are hindered from moving forward due to gaps in the current redevelopment policies.
NK Patel, President of the Institution of Town Planners of India (ITPI), recommended that Gujarat adopt the model used in Mumbai and Maharashtra, where the general FSI is 1.5, but redevelopment projects are granted an FSI of 4-5.
“An increase in FSI will undoubtedly accelerate redevelopment here,” Patel said.

He further suggested that developers should be allowed to use Transferable Development Rights (TDR) for any unused FSI, which could be transferred to other areas.
This, Patel believes, would motivate developers and make it easier for societies in poor structural condition to undergo redevelopment.
Former GICEA President Vatsal Patel echoed this sentiment, saying, “By offering higher FSI to redevelopment projects, local governments can collect more taxes from the properties, foster vertical development and provide more housing within city limits, all while encouraging the use of public transport.”

Patel also pointed out that with the increased population density resulting from redevelopment, there would be a heightened demand for essential civic services.
“The local authorities, like the Ahmedabad Municipal Corporation (AMC) and the Ahmedabad Urban Development Authority (AUDA), must ensure that infrastructure — such as sewage, water supply, and road networks — is upgraded accordingly,” he added, using Ahmedabad as a case study.

GCCI President Sandeep Engineer concluded, “Given the economic and infrastructure growth in the city and state, authorities must plan well ahead to address potential challenges, such as pollution, water supply, and traffic congestion, arising from the anticipated real estate boom.”

The Gujarat Chamber of Commerce and Industry (GCCI) is a leading business association in the state, representing a wide range of industries and advocating for policies that foster economic growth and development.
The organization regularly collaborates with government bodies and other stakeholders to address key issues and promote sustainable business practices.

The Gujarat Institute of Civil Engineers and Architects (GICEA) is a professional body dedicated to advancing the fields of civil engineering and architecture.
GICEA works closely with government agencies, educational institutions, and the private sector to promote best practices, innovation, and sustainable development in Gujarat.

Frequently Asked Questions

What is the Floor Space Index (FSI)?

The Floor Space Index (FSI) is a measure of the total floor area that can be built on a given plot of land. It is used to regulate urban development and ensure that construction is in line with the city's planning and zoning regulations.

Why is FSI important for redevelopment projects?

Higher FSI for redevelopment projects can accelerate urban renewal by allowing for more vertical development. This can make housing more affordable and efficient, while also promoting the use of public transport and reducing urban sprawl.

What is the current FSI in Gujarat for redevelopment projects?

Currently, the general FSI in Gujarat is 1.5, but industry stakeholders are urging the government to increase it to 4-5 for redevelopment projects, similar to the model in Maharashtra.

What are Transferable Development Rights (TDR)?

Transferable Development Rights (TDR) allow developers to transfer unused FSI from one area to another, providing flexibility and incentives for redevelopment. This can help in preserving green spaces and historical areas while promoting development in designated zones.

What challenges do redevelopment projects face in Gujarat?

Redevelopment projects in Gujarat face challenges such as gaps in current policies, the need for upgraded infrastructure, and the requirement for more affordable housing options. Stakeholders are urging the government to address these issues to facilitate smoother redevelopment processes.