Haryana Boosts Retirement Housing Policy with Higher FAR: What It Means for Real Estate
The Haryana Cabinet has approved a key amendment to the Retirement Housing Policy, including an increase in the permissible Floor Area Ratio (FAR) for retirement housing colonies. Under the revised norms, the additional FAR through Transferable Development Rights (TDR) has been increased to up to 3.0, up from the earlier limit of 2.25.
Real estate experts say the move will benefit developers active in Gurugram’s senior living segment, as a higher FAR allows more construction on the same land parcel. This improves project viability without a proportional increase in land costs.
The Haryana Cabinet approved a key amendment to the Retirement Housing Policy to support the ageing population and address their specific housing and lifestyle requirements. The cabinet, which met under the chairmanship of Chief Minister Nayab Singh Saini, approved an amendment to the policy for the planned development of retirement housing through the grant of a license under the Haryana Development and Regulation of Urban Areas Act, 1975, an official statement had said earlier during the week.
The amendment to the Retirement Housing Policy 2024 was introduced to better cater to the needs of the ageing population, keeping in view their specific housing and lifestyle requirements, it had said. As per the revised provisions, under Clause 5(ii), the approach norms prescribed in the policy dated October 20, 2020, as amended from time to time, will continue to apply only for the grant of additional Floor Area Ratio (FAR) as under the TDR policy.
In line with the provisions of the Transferable Development Rights (TDR) Policy, 2021, the cabinet approved an increase in the permissible FAR for Retirement Housing Colonies. The additional FAR through TDR has been enhanced up to 3.0 against the existing permissible FAR of 2.25 under the retirement housing. The benefit of additional FAR under TDR will be given only to those licenses that were approached as per the policy dated October 20, 2020, it had said.
The higher FAR, which has increased from 2.25 to 3.0 through TDR, is a big boost for developers already working in Gurugram's senior living space. “Higher FAR means that builders planning to enter the senior living space can build more on the same land parcel. This makes premium senior living in Gurugram more commercially viable without raising land costs by the same amount,” said Santhosh Kumar, vice chairman, ANAROCK Group.
“This is a welcome and timely move by the Haryana government. Increasing the FAR through TDR to 3.0 significantly improves project viability, a key constraint to scaling senior living in India. More importantly, it signals a shift from viewing retirement housing as a niche to recognising it as essential social infrastructure. However, policy success will depend on execution—clear guidelines, alignment between operators and developers, and a focus on service standards, not just real estate. If implemented well, this can catalyse organised senior living supply in NCR and set a benchmark for other states to follow in addressing India’s rapidly ageing population,” said Muralidhara C P, founder, Jeevin Consulting.
“The increase in FAR under the amended Retirement Housing Policy by the Haryana Govt is a progressive step that strengthens the viability of senior living projects and will help accelerate the development of much-needed supply in the sector. As the ecosystem evolves, it will be equally important to ensure that design standards, openness, and supporting infrastructure are carefully preserved to deliver a high quality of life for senior residents,” said Rajagopal G, chairman, Association of Senior Living India (ASLI).
Rishabh Periwal, senior vice president, Pioneer Urban Land and Infrastructure Ltd, said that the amendment comes at an opportune time. “In Gurugram, we have been witnessing a clear shift, with more families actively considering senior living - not as a fallback, but as a conscious and planned choice. The increase in permissible FAR provides developers with greater flexibility to design and deliver more integrated communities, with the kind of support systems that senior residents genuinely require. Importantly, the amendment reflects policy intent aligning with a real and growing need. This will play a key role in enabling the segment to scale in a more organised and sustainable manner.”
From a buyer’s perspective, this is a positive and reassuring development. It signals the emergence of more organised and thoughtfully planned options, moving beyond the relatively limited choices that have existed so far. It also points to a more structured pipeline of credible senior living developments entering the market, he added. “The amendment will help facilitate the developer to build more on the same land parcel without a proportional increase in land costs. It will also create a more conducive environment for organised retirement housing development. Since demand for senior living in markets like Gurugram is driven by a demographic shift towards planned communities, this conducive environment becomes imperative. For homebuyers, the amendment will serve the utility of providing a credible pipeline of options,” said Anil Godara, founder and managing director, J Estates.
Transferable Development Rights (TDR) is a planning tool that allows a landowner or developer to transfer unused development potential (FAR/FSI) from one plot to another. With higher FAR allowed through TDR (up to 3.0 in retirement housing), developers can build more units within the same project. This makes senior housing projects more financially attractive without sharply increasing land costs.
FAR (Floor Area Ratio) is a key real estate metric that tells you how much total construction is allowed on a plot of land. When FAR is increased (e.g., from 2.25 to 3.0), developers can build significantly more on the same land parcel, improving project feasibility without proportionately increasing land costs.
