FAR – FLOOR AREA RATIO INCREASED BY CAPITAL DEVELOPMENT AUTHORITY
The CDA Board just made it easier to build commercial buildings! Here’s the scoop:
- Bigger Buildings: You can now build taller buildings on commercial plots. The allowed size (floor area ratio) has increased for most plots.
The FAR – Floor Area Ratio is enhanced from 1:9 to 1:10, for commercial plots size measuring 3000 sq. yards to 4,999 sq. yards. The plots measuring 5,000 sq. yard has its FAR increased from 1:10 to 1:12.
- Easier Payments: Developers can now get started building with just a 50% down payment instead of needing the full amount upfront, which was previously in place.
Previously, possession from CDA was obtained by payment 100pc payment. It was onerous for many investors. The possession payment is now reduced to 50pc payment.
- More Time to Pay: The time frame to pay for commercial plots has doubled from one year to two years.
One year timeframe was given to investors for installments. Now, this is enhanced to 2 years.
- Discounts for Early Birds: Get a 15% discount for paying upfront, or 20% off if you pay in US dollars.
Previously, whoever submit full payment within 30 days of the bid acceptance letter was offered a 10 percent rebate on the remaining amount. Now this is enhanced to 15%. The 1st installment is considered 25pc of the amount. Secondly, if you can pay in US Dollars, there will a straight 20% rebate on the remaining amount.
- Underground Parking Options: Developers can now build underground parking under roads (with approval) to meet parking requirements.
The building underground parking facility would be allowed to those developers who have designated already three basement parking. As the 4th basement parking is not feasible, CDA has allowed building of the underground parking in the right of way at the expense of the developer.
- Bigger Hotels: Hotels can now be built with more floors. The FAR for hotels plots has increased from 1:6 to 1:8.
- Serviced Apartments Allowed: Hotels can dedicate some space for serviced apartments (apartments with hotel-like amenities).
This new policy applies to all commercial buildings in Islamabad. If you already own a commercial building and want to add floors, you’ll need to pay the Capital Development Authority for the extra space.
All these changes aim to boost Islamabad’s commercial property auctions. The CDA is offering investor-friendly policies similar to those in Central District Board Lahore.
Multiworks: Your Guide to Capitalizing on these Opportunities
At Multiworks, we’re passionate about empowering you to make informed decisions in Islamabad’s real estate market. These new CDA developments present a wealth of exciting possibilities. Contact us today to explore how you can leverage these benefits and embark on your successful commercial property journey in Islamabad!
