The Haryana government has adopted a new approach in their Retirement Housing Policy that provides for a much higher FAR with the help of TDR from 2.25 to 3.0. This will go a long way in transforming the senior housing market, especially in demand-driven cities like Gurugram, due to greater profitability for developers and additional housing options for consumers.
The policy change has been approved by the Haryana Cabinet with the Chief Minister, Nayab Singh Saini, being at its helm.
Push from policy to improve senior living ecosystem
The new version of the Retirement Housing Policy aims to cater to the changing housing requirements of the elderly population in India. As the trend of urbanization increases and the family structure changes, the requirement for organized senior living facilities has been growing continuously, particularly within the NCR.
Within the new version of the policy, the developers who run their business within the licensed retirement housing colonies regulated by the Haryana Development and Regulation of Urban Areas Act, 1975, will now be allowed to build more floor area ratio via the TDR process.
Previously capped at 2.25, the floor area ratio will now stand at 3.0.
Importance of FAR
Floor Area Ratio (FAR) is an important metric of real estate that defines the extent of building that can be legally constructed on the property. The higher the FAR value, the more is the amount of buildable area that developers can utilize to construct housing units on their property.
This becomes especially important in relation to senior housing developments since they will now have room to incorporate various elements such as:
- Housing units for seniors
- Healthcare and assisted-living centers
- Wellness and recreational parks
- Dining and recreational venues
- Improved open spaces and other infrastructures
An increase in FAR from 2.5 to 3.0 is anticipated via TDR.
Viability and scalability improvements for developers
Real estate professionals are convinced that this new change is going to create huge value in the Gurugram senior living market. As per experts the increase in FAR will enhance the viability of the projects by facilitating greater construction while avoiding a commensurate hike in land prices.
The development of senior living communities has already been attempted by various developers like DLF and even some of the institutions, and with this policy change, there will be many larger developers looking forward to developing senior living communities.
Moreover, industry professionals opine that a high FAR can allow greater integration of communities rather than creating scattered housing developments.
Experts also highlight that the amendment is not just a real estate reform but also a demographic response. India’s ageing population is increasing demand for structured housing that provides safety, healthcare access, and community engagement.The Association of Senior Living India (ASLI) stressed the importance of maintaining design standards, infrastructure quality, and livability as the sector expands.
The amendment is expected to accelerate project launches in Gurugram and surrounding NCR regions. Developers believe the increased FAR will help unlock stalled or underutilized land parcels and encourage the creation of more organized senior living communities.
“The Haryana cabinet’s amendment to the retirement housing policy, particularly the increase in permissible FAR to 3.0 through TDR, is a positive intervention aimed to directly address one of the most significant constraints to scaling senior living- The viability of projects. The amendment will help facilitate the developers 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. The move is poised to consolidate Haryana as a preferred location in terms of retirement housing in the coming years”, said, Mr. Anil Godara, Founder and Managing Director, J Estates
Effect on home buyers
Home buyers, particularly senior citizens and those planning to retire, would gain from this policy in multiple ways:
- More choices in the seniors' living category
- Well-planned integrated communities
- Greater access to healthcare and facilities providing assisted living services
- Greater organization and transparency in planning
- Potential for better pricing as a result of efficient supply management
Prices do not have to fall; however, greater efficiencies in construction can mean reduced cost pressures and more stable pricing.
Transferable Development Rights (TDR) oncorporation
This plan also enhances the importance of Transferable Development Rights (TDR), which is a planning technique enabling the transfer of surplus development rights from one location to another.
Under the new FAR of 3.0 with the help of TDR, the developers can utilize the available land optimally without having to buy extra land.
Increasing the FAR to 3.0 by the government of Haryana in order to facilitate the development of retirement housing can be seen as an important move towards building a robust elderly living ecosystem in India. This will improve the financial viability of such projects and will encourage larger communities.
If the move works out as intended, it will help Haryana become a frontrunner in the development of elderly housing projects in the country.
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