Haryana’s New Building Policy: Will Stilt Plus 4 Floors Make Homes More Affordable in Gurgaon?

Gurgaon’s housing market has witnessed a dramatic rise in property prices, with premium projects in New Gurugram surging by 53% in the last year, according to Savills India. To address the affordability crisis, the Haryana government has introduced a policy allowing the construction of buildings with a stilt (ground floor for parking) and four additional floors in residential sectors. But can this policy make homeownership more attainable?

Potential Benefits of the New Policy

  1. Increased Housing Supply: Allowing more floors per building could significantly boost the number of residential units in Gurgaon, helping to meet the high demand that has been outpacing construction rates.
  2. Price Stabilization: An increased supply of housing units could slow down or even reduce the rapid rise in property prices, making homes more affordable for buyers who have been priced out of the market.
  3. Improved Urban Living: Better infrastructure development funded by developer contributions and more housing choices could enhance the quality of life in Haryana’s urban areas.

Shveta Jain, Managing Director of Residential Services at Savills India, said, “This decision allows developers to capitalize on increased floor area ratio, offering more units on the same land footprint while maintaining cost efficiency.”

Background and Specifics of the Policy

In 2017, Haryana allowed buildings with four floors above a stilt. However, issues such as strained water and sewage systems, potential damage to neighboring houses, and increased traffic congestion led to resident protests. In February 2023, the government halted these constructions and consulted experts, leading to the new policy.

Key Provisions:

  • Pre-Approved Plots: Buildings with stilt-plus-four floors are allowed where the original layout plan designated four individual dwellings.
  • Corner Plots with Wider Roads: On roads at least 10 meters wide, plots originally designated for three dwellings can now be built with stilt-plus-four floors, provided the owner obtains written consent from all neighboring plot owners.
  • Affordable Housing Exemption: Applies to Deen Dayal Upadhyay Jan Awas Yojana (DDJAY) colonies for low-income groups.

Violators who constructed buildings without approval can apply for regularization by paying a penalty ten times the rate prescribed for unauthorized constructions.

Rajjath Goel, Managing Director of MRG Group, emphasized, “Construction of the fourth floor is subject to the capability of the existing infrastructure to bear the additional load.”

Santhosh Kumar, Vice Chairman of ANAROCK Group, noted, “This decision will add new supply to the market, especially in Gurugram where housing demand has skyrocketed.”

Developer Insights

Developers argue that independent floors offer quicker returns on investment compared to high-rise buildings due to faster construction times and easier sales.

Pradeep Aggarwal, Founder & Chairman of Signature Global (India) Ltd., stated, “The policy will enhance independent floors with higher property valuations and open the premium housing segment to higher quality development.”

Santosh Agarwal, CFO and Executive Director of Alphacorp, added, “This policy meets rising housing demands in urban areas like Panchkula and Gurugram, ensuring efficient land use while supporting sustainable urban development.”

Aman Sarin, Director & CEO of Anant Raj Limited, highlighted, “The policy is expected to boost the supply of builder floors and stabilize property prices, offering more affordable options.”

Challenges Ahead

  • Infrastructure Impact: The success of the policy depends on sufficient infrastructure to handle increased population density.
  • Developer Focus: Whether developers prioritize affordable or premium housing options remains uncertain.
  • Neighbor Consent: Obtaining consent from all adjoining plot owners for taller buildings on corner plots could be time-consuming.

Residents’ welfare associations (RWAs) remain concerned about infrastructure strain, traffic congestion, and parking issues. Some experts believe the policy may benefit developers more than homebuyers by encouraging high-end apartments rather than affordable housing.