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Bengaluru real estate developers welcome Karnataka's new setback norms but warn of project delays, higher costs

Bengaluru real estate developers say reworking designs and approvals for ongoing projects could cause delays, raise costs with new setback amendments in place

Updated on: Aug 18, 2025, 10:12:44 IST
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Bengaluru real estate developers say the Karnataka government’s amendment to setback norms under the Revised Master Plan (RMP) 2015 will bring much-needed clarity and design flexibility, particularly for mid-rise buildings. They caution, however, that ongoing projects may face short-term redesign costs and delays in adapting to the updated requirements.

Bengaluru developers say Karnataka’s amendment to setback norms under RMP 2015 offers clarity and design flexibility, but warn of short-term costs and delays for ongoing projects. (Representational Image) (Unsplash )
Bengaluru developers say Karnataka’s amendment to setback norms under RMP 2015 offers clarity and design flexibility, but warn of short-term costs and delays for ongoing projects. (Representational Image) (Unsplash )

The amendment, effective August 1, updates setback standards for buildings across the city, with a particular focus on structures taller than 12 metres. Setback refers to the minimum open space between a building and the property boundary.

Under the revised rules, buildings on plots up to 4,000 sq. m must maintain at least 1.5 metres at the front and 1 metre each on the sides and rear. For larger plots, the minimum is 5 metres on all sides. Buildings with 12–15 floors but no stilt floor must have a 5-metre setback, with higher requirements for taller structures.

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Clarity and livability gains

Industry experts say the codified norms will improve light, ventilation, and safety in new developments while resolving inconsistencies in earlier guidelines.

“The amended setback rules are a welcome move, particularly for buyers,” said Priyanka Kapoor, senior vice president at Research and Advisory, ANAROCK Group. “They eliminate ambiguity, especially for buildings using stilt floors for parking, and address safety concerns. But their real impact will depend on proper implementation alongside infrastructure upgrades.”

Lakshmi Prasad G V, Head of Liaison at Assetz, said the changes also enhance buildable potential for certain projects. “Buildings up to 15 metres in height now benefit from the exclusion of stilt floors (up to 3 metres) from total height calculations, allowing one additional floor without design penalties. This improves design flexibility and enables more efficient parking layouts.”

Short-term challenges: Increased costs, likely to delay ongoing projects

While the new rules are expected to smooth approvals and improve urban design, developers admit the transition won’t be seamless.

“This amendment was required and brings standardisation, especially for taller structures,” said Anil RG, managing director, Concorde. “However, reworking designs and approvals for ongoing projects could cause delays and raise costs, and in some cases, we may need to re-evaluate project feasibility.”

Prasad of Assetz noted that the amendment applies to all existing buildings with proposed modifications and all ongoing projects, meaning some developers will have to redesign plans, incur additional approval costs, and extend timelines for projects.

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Developers will likely adapt new design innovations

To adapt, developers are looking to design innovations. “Balancing FAR optimisation with setbacks requires context-specific solutions,” Prasad said. “We can use stilt floors smartly, adopt vertical stacking, and work closely with planning authorities to remain compliant without compromising viability.”

Developers say that design innovations such as vertical stacking, efficient floor plate layouts, and integrated service cores help maintain project viability even with larger setback requirements. "Additionally, engaging early with planning consultants and development authorities is crucial to optimising layouts while ensuring compliance," Prasad said.

Anil RG noted that setbacks, when designed well, can improve livability. “We should focus on optimising space without sacrificing light, air, and comfort. Setbacks, when used well, can actually enhance the livability of a project,” he said.

Overall, developers say that amended regulation fosters a more streamlined and enforceable planning regime, even though they may face short-term friction in adjusting to these standards.

  • Souptik Datta
    ABOUT THE AUTHOR
    Souptik Datta

    Souptik Datta is a deputy chief content producer at Hindustan Times Digital, where he reports on southern India with a focus on real estate, urban infrastructure and environmental urban issues. His coverage tracks the intersection of policy, capital flows, regulation and sustainability, examining how these forces shape housing markets, commercial real estate and large-scale infrastructure development across rapidly transforming cities. He also closely tracks civic issues affecting urban residents, including property taxation, planning approvals, public transport expansion, water stress, waste management and the governance challenges that influence everyday life in India’s metros. Souptik’s reporting is driven by a strong interest in accountability, consumer rights and the lived realities of homebuyers and investors navigating volatile pricing cycles, regulatory changes and project delivery risks. He frequently analyses project launches, land monetisation strategies, planning frameworks, RERA-related developments and the broader implications of infrastructure investments on emerging growth corridors. His work blends on-ground reporting with data-backed analysis and long-form explainers aimed at demystifying complex real estate and infrastructure developments for readers. He is an alumnus of the Indian Institute of Journalism and New Media. Before joining Hindustan Times Digital, Souptik was associated with Moneycontrol at Network 18, where he covered real estate, infrastructure and allied sectors, producing market insights, policy-led stories and in-depth features. Outside the newsroom, Souptik is an avid solo traveller and documentary enthusiast, exploring diverse regions and visually documenting unique narratives through film and photography. In his early career, Souptik also freelanced as a documentary photographer, independently working on visual storytelling projects that captured grassroots narratives, urban change and everyday life. He can be reached at souptik.datta@htdigital.in.Read More

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