Impact of new order on premium FSI

The Government order permitting premium FSI in the area coming under Chennai Corporation, 16 municipalities, 20 town panchayats and 214 village panchayats in Chennai, Tiruvallur and Kancheepuram districts is expected to have a marginal impact on end users.
The gazette notification is expected shortly and the move would permit builders of new projects in CMA, excluding the Red Hills catchment area and areas adjoining water bodies maintained by the Chennai Metropolitan Water Supply and Sewerage Board for drinking water purpose, to construct extra floor space on payment of a premium.
“It is too early to forecast the impact of permitting premium FSI on prices of housing units in Chennai,” said Vikram Kapur, member secretary, CMDA.
There could be a marginal reduction in cost of housing units in new residential projects if the market value is higher than the guideline value, said R.Kumar, MD of Navin.
But buyers of the residential projects making use of the provisions of premium FSI would have lesser undivided share of land when compared to the projects which did not seek premium FSI, he added. The premium paid does not bring anything tangible.