Joint Development (JD) Ratios — Bengaluru & micro-markets

Land owner share in Bengaluru JD deals ranges from 25% to 60%, depending on the zone and development type. Ultra high-rise in the CBD and prime tech corridors gives the lowest share (25–32%) but on the largest saleable area; plotted development in outer zones gives the highest share (50–60%) on smaller saleable area.

Higher FAR means more saleable area per acre, so the developer's construction cost, approvals, and sales risk all scale up. They recover their higher cost base by taking a larger share of the built area. In absolute terms, land owners often earn more at 30% of a high-rise than at 50% of a low-rise on the same 2-acre plot.

Koramangala is in the High-Rise Zone. Share ranges here: 28–35% for high-rise (11–25 floors), 32–40% for mid-rise (7–10), 38–48% for low-rise (5–6), 45–55% for villa. Plotted development is not typical in this zone.

Whitefield ITPL sits in the Ultra High-Rise Corridor — one of Bengaluru's most premium JD zones. Share ranges here: 25–32% for ultra high-rise (25+ floors), 30–38% for high-rise (11–25), 35–45% for mid-rise (7–10), 40–50% for low-rise (5–6).

1 acre minimum for high-rise (11–25 floors), 2 acres minimum for ultra high-rise (25+ floors). Abutting road width requirements per BBMP/BDA norms are 18 metres for high-rise and 24 metres for ultra high-rise.

Under Karnataka's 2025 Premium FAR policy, developers can purchase additional FAR beyond the base entitlement at 28% of the guidance value per square foot. In Bengaluru, base FAR of 3.0–3.25 on ultra high-rise can stack to 4.2–5.2, high-rise from 2.5–3.0 to 3.5–4.2, mid-rise from 2.25–2.5 to 2.9–3.5, and low-rise from 1.75–2.25 to 2.2–2.7 — subject to road width, air funnel clearance, fire access, and setback envelope. Stacking Premium FAR raises saleable area, which strengthens the land owner's position in negotiation.

Plotted development isn't typical in the Ultra High-Rise Corridor or High-Rise Zone — land values are too high and BDA zoning favours vertical development. Plotted JD deals happen primarily in the Low-Rise/Mid-Rise Zone (Kanakapura Road, Kengeri, Attibele, Anekal) and Villa Area (Devanahalli outer, Doddaballapur, Hoskote), where share is 50–60%.

Yes. Section 45(5A) of the Income Tax Act (inserted by Finance Act 2017, effective 1 April 2018) gives individuals and HUFs a key relief: capital gains on a registered JD agreement are deferred to the year in which the Completion Certificate is issued by the competent authority — not the year the JDA is signed. If the CC is issued for part of the project first, that proportion of the tax triggers at that point. The full value of consideration is the stamp duty value of the land owner's share in the project on the CC date, plus any cash received. LTCG on land and building is currently taxed at 12.5% without indexation (post Budget 2024, for transfers on or after 23 July 2024). If the land was acquired before 23 July 2024, the land owner can opt for either 12.5% without indexation or 20% with indexation (in which case indexation runs only up to the JDA signing year, not the CC year). Separately, the developer must deduct TDS at 10% under Section 194-IC on any cash consideration paid to the land owner (20% without PAN, no threshold limit) — this is creditable against final tax liability. The benefit is not available if the JDA is unregistered, if consideration is entirely in cash (no share in the project), or if the land owner transfers their share before the CC is issued. The provision applies only to individuals and HUFs — not firms, LLPs, or companies. Always consult a tax advisor for your specific situation.

Per Article 5(f) of the Karnataka Stamp Act 1957, a Joint Development Agreement attracts 2% stamp duty on the market value (capped at Rs. 15 lakh). The registration fee on JDAs, historically 1% (capped Rs. 1.5 lakh), was revised to 2% effective August 31, 2025 to address state revenue shortfalls. The consequent General Power of Attorney, if executed alongside a duly stamped JDA, attracts only Rs. 200 stamp duty under the 2013 amendment — a significant relief over the old regime where both documents were fully stamped. Registration is mandatory for enforceability under the Registration Act. Rates are revised periodically; confirm current rates at kaverionline.karnataka.gov.in or with a local lawyer before signing.

The zone-wise ratio ranges are reviewed every quarter using recent JD deal data from 1acre's 1,000+ agent network across Karnataka.