Hyderabad’s unrestricted Floor Space Index (FSI) policy, which has allowed for the construction of high-rise buildings without limits, is now facing challenges due to oversupply and rising prices.
Rising High-Rise Construction
In recent years, Hyderabad witnessed a significant increase in high-rise residential projects, driven by the absence of FSI restrictions. Developers capitalized on the growing demand for these towering structures, eager to maximize profits.
Challenges of Over-Supply and Higher Prices
However, the unrestricted FSI policy has led to several downsides. The increased supply of high-rise units has resulted in lower resale values due to oversupply. Additionally, the higher prices associated with these high-rise properties have reduced demand, particularly among budget-conscious buyers.
The Impact of FSI on Market Dynamics
This shift in market dynamics highlights the importance of carefully considering the potential consequences of unrestricted FSI policies. While such policies can stimulate development and economic growth, they can also lead to unintended consequences if not managed effectively.
Balancing Development and Market Stability
To address these challenges, policymakers and industry stakeholders need to carefully evaluate the benefits and drawbacks of unrestricted FSI policies. Finding a balance between promoting development and ensuring market stability is crucial for Hyderabad’s long-term growth and prosperity.
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