The Government of India has introduced a major overhaul of its Transit-Oriented Development (TOD) policy to boost affordable housing along metro corridors.

Under the revised norms, existing land-use restrictions have been removed, the minimum plot size required to qualify has been reduced, 65% of the total Floor Area Ratio (FAR) of the Built up area (BUA) must be allocated to smaller residential units upto 100sq m, and a single-window clearance system has been introduced to speed up approvals. It is done to ensure a strong push toward affordable housing in well-connected urban areas.

📊 FAR & BUA Explained (Quick Guide)
BUA (Built-Up Area) = Total floor area across all floors
FAR (Floor Area Ratio) = BUA ÷ Plot Area
BUA = FAR × Plot Area

FAR determines how much construction is allowed on a given plot.

Key Highlights of the New TOD Norms

• 65% FAR Reserved for Affordable Housing
  A majority of the buildable area must now be used for smaller residential units.
• TOD Zones Defined
  Areas within 500 metres on both sides of metro corridors are designated as TOD zones.
• Minimum Plot Size Reduced
  Reduced from 1 hectare to 2,000 sq.m, enabling wider developer participation.
• Higher Development Density (FAR up to 500)
  Allows construction up to 5 times the plot size, promoting vertical growth.
• Mixed-Use Development Allowed
  Residential, commercial, and social infrastructure can coexist.
• Single-Window Clearance System
  Faster approvals within 60 days.
• Standardised TOD Charges
  Approx. ₹10,000 per sq.m to support infrastructure upgrades.

Why This Policy Matters for Real Estate

1. Boost to Affordable Housing Supply

Ensures a steady pipeline of budget-friendly homes in prime locations.

2. Better Land Utilisation

Encourages optimal use of land near transit hubs through higher FAR.

3. Shift Towards Transit-Centric Living

Promotes walkable communities with reduced dependence on private vehicles.

4. Increased Developer Participation

Lower entry barriers will attract mid-sized and new developers.

Urban Planning Impact: A Structural Shift

This is more than a housing policy—it’s a city transformation strategy:

• Compact, high-density urban clusters
• Integration of housing with public transport
• Reduced urban sprawl
• Improved last-mile connectivity

Challenges & Considerations

• Infrastructure stress due to higher density
• Need for strong regulatory enforcement
• Balancing density with livability
• Coordination across government bodies

What This Means for Buyers & Investors

• Access to affordable homes in prime metro-connected areas
• Increased demand in TOD zones
• Developer shift toward mid-income housing segments

Make Smarter TOD Investments

With TOD zones set to reshape urban housing, using verified data and structured deal management tools from Verified.RealEstate can give you a clear edge in identifying the right opportunities.