Noida FAR Policy 2025: Floor Area Ratio Rules
‘Noida’s FAR Policy 2025‘, Everyone is discussing it as Uttar Pradesh government begins a major policy overhaul of Noida’s real estate, lifting height and ground coverage restrictions on residential, commercial, and industrial projects. Under the Noida FAR policy update 2025, construction regulations in Noida, Greater Noida, and YEIDA have become the same in order to streamline the approvals and reduce delays, and build up capital for new developments.
These reforms are anticipated to effect a change in the Delhi NCR property market. To developers, the changes offer new opportunities. Of course, for homeowners, the implications are more subtle.
Changes Under the New FAR Policy
- Revised FAR Limits. The government has revised Noida FAR Policy for all land categories:
That means that developers can build more floor space in the same piece of land, which results in a larger housing supply.
- Removal of coverage caps at the ground level. Setback rules have been standardised at 3 or 9 metres, depending on plot size. This creates more potential constructability, especially on small plots, without incurring fire and ventilation safety obligations.
- Rationalising Parking Policy. The revised rules helped reduce parking space over-allocation:
Group Housing—1–1.5 slots per unit.
Commercial: 1 slot per 50–500 sq metres.
Industrial: 1 slot per 300 sq m.
Institutional: 1 slot per 85–200 sq m.
This new standard saves cost for construction and makes space even more efficient.
3. Green Cover Adjustments. Up till now, industrial projects would only provide 25–50% of their development space with green cover. This was trimmed to 5–10% in the new policy and required tree plantation to sustain ecology.
Impact on Developers
Better monetisation of land — Higher FAR makes plots more productive, which leads to higher ROI.
Quicker approvals: All Noida, Greater Noida, and YEIDA harmonised rules mean less regulatory headaches.
How competitive differentiation matters: Since projects are more vertical than ever, developers will need to differentiate on branding, amenities and location to get noticed.
Impact on Homebuyers
Advantages:
More housing units available, offering more choices.
More launches in prime, well-connected neighbourhoods.
Higher supply could lead to price stability.
Faster project pipelines, lowering buyer anxiety.
Challenges:
More intense project density could put a stress on lifts, parking and amenities.
Additional demands on local infrastructure — road, drainage, utilities — may be detrimental.
Resale appreciation could slow down as inventory levels increase.
The policy also promises end-users choice and affordability. That means potentially long holding periods before property prices soar, for investors.
You must have questions like this in your mind.
Q. What is FAR in real estate?
A. FAR (Floor Area Ratio) is the ratio between the total built-up area of a development on its present size and the size of the land parcel. A greater FAR allows more construction on the same land.
Q. After changes to FAR, will property prices in Noida increase?
A. Short-term increases in supply may maintain price stability even if supplies are expanded. Appreciation will be contingent on how rapidly infrastructure catches up to growth.
Q. Will these developments have an advantage to existing projects?
A. Less well-used FAR of older societies could lead to development and redevelopment of former ones.
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