Odisha Government Announces New Building Rules to Help Boost Real Estate

At a time when the real estate sector is reeling under the effects of the COVID-19 pandemic, the Odisha government has come up with several reforms. These are aimed to help the real estate sector revive and to provide affordable housing in the urban regions. Brought up under the Odisha Development Authority Rules 2020, these reforms come with a number of exemptions, relaxations and incentives on the building laws.

The most important among these reforms is the one aimed at promoting affordable housing. Under this, the government would provide developers with free land. In return, the builders would have to develop 40% of the land for affordable housing. After development, they would have to hand over this 40% to the government, following which these residential units will be allotted to the economically weaker sections. The remaining 60% can be used by the developers however they want, such as building high-end projects.

Apart from providing modern housing for even the low-income groups, this move would boost private-public partnership. It is expected that more and more developers would step forward to work with the government and benefit from this scheme. Low-income groups refer to the households whose annual income ranges from INR 3 lakhs to INR 6 lakhs.  The households with an annual income under 1.6 lakhs are classified under the economically weaker section. Promoting affordable housing for them in urban areas is certainly a progressive move and Odisha is the first Indian state to come up with such an initiative.

Other reforms include an increment of the maximum floor area ratio. It has been raised to seven, which is currently the highest in India. This implies that a project can be vertically developed up to seven times the size of the land on which it is being constructed. A number of reforms would also make it easier to carry out construction activities and get properties certified for occupancy readiness. An online platform for the approval of building plans would also be introduced soon.

The government has already introduced a number of model plans. Developers building their projects using these plans aren’t required to wait for the final approval. Minor construction activities, such as renovation of buildings don’t require any approval. The structural stability and fire safety norms are now non-negotiable. These changes would certainly infuse the real estate sector with more flexibility and make planning, construction and occupation of properties much easier.

These reforms are expected to bring about a number of benefits. Approval of projects would become a hassle-free and well-organised process. Cost of housing would be reduced, thus attracting more and more investors. Considering the tough times that the Indian realty sector is now going through, the infusion of credit would certainly be a major boost. It is expected that the real estate industry in Odisha would revive and thrive well in the near future.