Karnataka Raises Building Limits in KIADB Areas; Taller Projects Now Allowed

The Karnataka government has relaxed building rules in industrial areas developed by the Karnataka Industrial Areas Development Board (KIADB), allowing companies and developers to construct taller buildings than before and effectively raising the skyline across key industrial corridors.

Under the new rules, builders can now go up to a floor area ratio (FAR) of 5.2 by paying a premium. Earlier, the maximum limit in many cases was around 3.25.

FAR refers to the total built-up area permitted on a plot. For example, if a site measures 1,000 square metres, a FAR of 5.2 allows construction of up to 5,200 square metres across multiple floors.

The government said the move is aimed at making better use of land, especially as industrial plots become scarce and expensive.

What Has Changed under New Norms?

The government order dated February 6 applies to industrial areas, special investment regions, infrastructure schemes and integrated townships within KIADB boundaries in Bengaluru Urban, Bengaluru Rural and surrounding districts.

Not Just Factories: What KIADB Plots Include

KIADB estates function as integrated industrial ecosystems and are not limited to factory land. They include:

• General industrial plots for manufacturing and engineering
• Sector-specific parks such as Aerospace, IT/BT, Hardware, Apparel and Automotive clusters
• Single Unit Complexes (SUCs) for large industrial entities
• Special Economic Zones (SEZs) for export-oriented businesses
• Civic amenity plots for hospitals, banks, fuel stations, fire stations, police outposts and training institutes
• Commercial plots for hotels, restaurants, retail and service facilities
• Residential components, including worker housing and high-density apartments in newer industrial townships

The revised FAR norms apply across these categories within KIADB-notified areas.

How the New FAR Structure Works? Road Width Now Key Factor

Permissible FAR now depends on adjoining road width, with higher limits available through premium purchase:

Roads above 30 metres: FAR up to 5.2

Roads between 24 and 30 metres: FAR 4.8

Roads between 18 and 24 metres: FAR 4.0

Roads between 12 and 18 metres: FAR 3.6

Roads below 12 metres: Higher limits than earlier, ranging between 2.45 and 2.8

This allows significantly more floor space on the same land, especially in industrial zones on Bengaluru's outskirts.

Integrated Townships Get Additional Flexibility

In integrated industrial townships, plots along roads wider than 30 metres can utilise:

FAR up to 5.2

Ground coverage up to 45%

This enables denser mixed-use campuses combining manufacturing floors, warehousing, offices, retail spaces and worker housing within a single layout.

Setbacks Relaxed for Smaller Plots

The reforms also ease setback norms for smaller industrial sites.

For plots up to 255 square metres with buildings up to seven metres high:

Front setback requirement: 1.5 metres

One side setback: 1 metre

Road width must be at least nine metres

These changes increase the usable construction area.

Parking Norms Updated

To support higher density, parking requirements have been revised:

General industries and data centres must reserve at least 2% of total plot area for parking.

Warehousing and logistics projects must allocate 3% of plot area for vehicle movement and parking.

What This Means for Bengaluru

Officials say the revision is intended to maximise output per acre as industrial land tightens around Bengaluru.

"We want each acre to support more industries and generate higher economic output," said S Selvakumar, Principal Secretary, Commerce and Industries.

Industry observers believe the policy could encourage vertical factories, multi-level warehouses and integrated industrial townships.

Areas such as Bagalur, Hardware Park and Devanahalli - where internal roads are wider - are expected to see the biggest impact.

Real estate analysts say many industrial plots were earlier underutilised due to lower construction limits. The higher FAR and relaxed setbacks could gradually change the skyline of Bengaluru's outer industrial belts.