In a significant move to promote sustainable construction practices, the Punjab government has announced a 5% additional Floor Area Ratio (FAR) incentive for real estate projects that achieve at least a bronze-level green building certification. The initiative is part of the state’s broader environmental policy to reduce the carbon footprint of new developments and encourage eco-friendly infrastructure.

This policy is expected to spur interest among developers to adopt green construction technologies, including energy-efficient designs, rainwater harvesting, solar integration, and sustainable materials. The 5% FAR concession will provide additional buildable space, making green projects not only environmentally responsible but also economically attractive for builders.

Real estate experts suggest this move could especially benefit urban developments in cities like Mohali, Ludhiana, and Amritsar, where premium space is in high demand. Projects aiming for IGBC, GRIHA, or LEED certification now have a clear incentive to pursue eco-friendly credentials.

Key Highlights:

• Policy Announcement: 5% FAR incentive for bronze-certified green buildings

• Target Group: Developers and builders across Punjab

• Objective: Promote sustainable, eco-friendly real estate projects

• Expected Impact: Increased adoption of green certifications, boost in sustainable development