Stringent riders may make TOD unviable
The concept of TOD is a fast growing trend around the world and is aimed at creating a live, work and play culture. It is associated with the 3Ds – high density, diversity of real estate formats and distance from Metro stations. The ideal scenario is creation of compact, walkable, mixed land use communities which are generally close to high-quality train systems.
The zoning regulations for TOD released in March this year had specified that plots of 5,000 sq m in developed areas with a 60 ft wide (or more) road could get an additional FAR of up to 4 and an underdeveloped area with plot size of 40,000 sq m and 100 ft wide (or less) road could get a maximum FAR of 5.
Real estate experts feel such stringent riders may make the scheme unviable. “Very few plots in Ghaziabad will qualify under this criteria. Floor space index or FSI of 4 has already been implemented. The only change here is that this will now be applicable for commercial and industrial plots as well. The biggest challenge is that commercial real estate along this belt does not have much potential given the current economic scenario unless both commercial and residential structures are allowed. If that is done, then it will at least be monetisable,” says Anckur Srivasttava of Gen Real Advisers.
“Currently even those with land parcels with an FSI of 2.5 are struggling to sell or monetise their assets. Thus, it will be a major challenge to make an FSI of 4 or 5 viable in the current economic scenario,” he says, adding that for the scheme to be a success, Ghaziabad should allow for mixed land use for smaller land holdings such as 10,000 sq m (2 acre) plots.
The current price for commercial property in the area is around 18,000 to 25,000 per sq ft and residential commands anything between 3,000 per sq ft and 6,500 per sq ft along the two corridors.
TOD is a fast growing trend around the world