Haryana Government’s Ban On “Stilt Plus Four Floors” Construction: What It Means For Gurugram’s Thriving Plotted Residential Developments

On 22 February 2023, Chief minister of Haryana, Manohar Lal Khattar announced in the state assembly that the state government will not entertain new applications or building plan maps for stilt plus four-storey structures.

Following this, TL Satyaprakash, director general, Town and Country Planning (TCP) department, issued an order stating, “The government has decided to keep all fresh ‘stilt plus four-floor’ building plan approval of residential plots in abeyance, including the applications pending or received for approval."

This includes all sectors developed by Haryana Shahari Vikas Pradhikaran (HSVP), Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) and urban local bodies (ULB).

However, the order added that all earlier sanctioned plans for stilt plus four floors shall remain valid.

Further, plot owners can continue to apply for ground plus two floors and stilt-plus-three-floor building plans under existing rules.

A special committee will be constituted to re-examine the issue which will have urban planners, RWA representatives and officials from HSVP and TCP.

The decision would be applicable in the entire state. As of now, there is a stay in Panchkula district only.

The Demand For “Stilt Plus Four Floors” Buildings In Gurugram

While Gurugram witnessed extensive developments of the high-rise housing complexes, well equipped apartments, many parts of the city also simultaneously saw a significant growth of plotted residential colonies.

This was also favoured as it provided the owners and the developers an opportunity to independently build floors — with greater comfort and privacy, along with high-end recreational amenities, expansive bedrooms and hall spaces, and advance equipped houses — all in lesser capital as compared to high rise apartments.

The costs of development and maintenance of independent floors remained low, as the number of floors remained less compared to high-rise residences which extends from 15 to 70 floors with approximately double or triple the maintenance costs.  

Initially, for these plotted developments, the state’s earlier housing policy permitted two and a half floors, that could be built by the plot owner in licensed colonies.

However, with the rising demand in the city, the registration of three independent floors in residential plots gained pace in 2009, when a policy was framed in this regard.

Later, on account of the increasing popularity of four independent builder developed floors in Delhi, the demand for the registration of four floors intensified.

Keeping in view the public demand, in 2019, the government in Haryana amended the policy to allow the construction of up to four floors, with a stilt area reserved for parking.

The provision of a stilt was mandatory to reduce the parking problem. 

The demand for low-rise independent floors brought a notable influx of homebuyers to the Gurugram housing market, with an inclination to invest in chaos-free, low-density gated communities.

According to estimates, there has been an upsurge of 42 per cent in the launch of independent floor projects in Delhi-NCR.

Objections Raised By Residents To These Additional Floors

However, the development of such structures has come under criticism from residents and resident welfare associations (RWA).

As per the residents, with the new policy in 2019, there has been a tremendous growth in construction of extra floors in the areas.

This has resulted in a substantial strain on the existing infrastructure of the plotted colonies and the rising issues in these residential areas have not been addressed by the authorities.

Hence, the residents have welcomed the government's decision to put on hold the extension of extra floors, terming it as a much needed relief on the already overburdened civic infrastructure of the city.

We have been against the decision of allowing the fourth floors from the beginning and have been demanding a ban on the policy for the past three years," said TN Kaul, general secretary of Gurgaon Citizen's Council, who filed a petition in the Punjab and Haryana high court in 2021.

The people claim that extra floors have been added by changing the building code, but there has been no increment in the infrastructure capacity to handle this unplanned growth and population density.

Given the existing infrastructure challenges in Gurugram, the construction of additional floors has exacerbated the supply issues of utilities such as water, drainage, electricity, security and adequate space for car parking.

This is because colonies were originally planned to be equipped with amenities to cater to a density based on the permissible two-and-half floor houses.  

Furthermore, this decision will also influence the real estate market of the city.

Gurugram-based property consultants said this decision will increase the price of plots and make it more expensive for buyers because supply will also reduce.

Till now, property owners and home developers invested in residential plots in licensed colonies, with prices marked to make margins through developing four floors.

As per experts, with only three floors permitted on residential plots, the margins are likely to fall and so will the demand for plots.

The cost of a builder floor, however, is likely to rise as many have already bought land at higher prices.

For instance, a residential floor in a stilt plus four floor building in DLF areas ranges between Rs 5 crore to Rs 7 crore and now, with only three floors allowed, the price of the floors may increase to cover the desired cost and profit margins.