Buying land for commercial development is different from buying land for a house. The upside is bigger - but so are the checks you must do first. Focus on three things early: can vehicles and customers reach the site, how much can you legally build, and what uses the local authority actually allows. Get these wrong and your spreadsheet turns into a headache; get them right and you’ve got a profitable project.

Quick summary

• Access: good frontage + adequate approach road + last-mile connectivity = usable commercial land. Weak access destroys value, even for cheap land. (NAREDCO)

• FAR / FSI: the single number that tells you how much floor area you can create. Calculate buildable floor area early - it drives revenue and parking needs.

• Zoning & approvals: check which authority (BBMP, BMRDA, BIAAPA, panchayat) sanctioned the plot and whether the land has the right land-use (commercial / mixed-use) or needs DC/CLU. Don’t guess. (bmrda.karnataka.gov.in)

1. Access - the first, simple filter

Why it matters: customers, deliveries and staff must reach your building easily. A prime plot with a tiny approach road can be worthless for retail, logistics or office use.

What to check on site:

• Frontage & approach road width - how many lanes can pass? For commercial development, you ideally want a wide, all-weather road and good turning radii for trucks/cabs. Local bylaws set minimum approach widths; small apartment access can be 3.5m, but taller/commercial sites require wider roads and minimum clearances. Confirm the requirement with the local planning body. (NAREDCO)

• Legal access - is the road public or a private access? If the only route is a narrow private lane, confirm right-of-way and whether banks will finance construction.

• Last-mile & modal mix - bus stops, metro/rail connectivity, and taxi/ride-hailing access increase commercial value.

• Utilities & drainage - high-capacity water, sewer, power and telecom are prerequisites for commercial projects; check existing supply lines and any known sewer/drainage constraints.

• Traffic impact - for larger commercial projects, local authorities may require a traffic impact assessment; try to get local traffic counts or at least observe peak-hour flows.

Quick red flag: a site that needs lengthy new road construction or repeated private-lane negotiations - it usually eats margin.

2. FAR / FSI - how to translate land into sellable area

What it is (in one line): FSI (or FAR) = total permitted floor area ÷ plot area. It tells you how many square feet you can legally build on that piece of land. Use the formula to estimate your maximum buildable area.

How to calculate (simple):

• FSI × Plot area = Total permissible floor area (GFA)

• Example: 10,000 sq ft plot × FSI 2.5 = 25,000 sq ft total floor area across all floors.

Bengaluru note: FSI/FAR in Bangalore is not a single city-wide number - it depends on plot size, land-use, and approach road width as set in the Master Plan and local bylaws. Always check the applicable FSI from the local master plan or the planning authority (BDA / BMRDA / BBMP).

Practical points:

• Check exclusions - some items (basements used for parking, lift shafts, staircases, mechanical rooms) may be excluded or treated differently by the local authority - ask the building department for the exact list.

• Coverage limits & setbacks - FSI interacts with ground coverage and setback rules; the buildable footprint per floor will be reduced by mandatory setbacks. Recent bye-law updates (setback rules) are important for large plots - check local notifications.

• Premium/transfer FSI - some cities allow additional (premium) FSI subject to payment or special permissions. If you’re planning a high-value scheme, check if premium FSI is available and at what cost.

Quick worked example (use this when you visit a site):

• Plot area: 20,000 sq ft

• Applicable FSI: 2.0 - Permissible GFA = 40,000 sq ft

• Estimate efficiency (net sellable/carpet vs GFA): if your project efficiency is 70%, the sellable area ≈ is 28,000 sq ft. Use market rates on sellable area to estimate revenue. (Efficiency depends on lobby, services, corridors, and parking allocation.)

3. Zoning & approvals - who greenlights what

Local planning authorities and the official land-use classification determine where commercial development is allowed and what permissions you need.

Who to check with:

• Local municipal body (BBMP) for sites inside city limits - BBMP issues building plan sanctions and OCs, and enforces zoning within the city.

• BMRDA / BDA / TPAs for peri-urban and metropolitan areas - these bodies plan the metro region and publish local planning area maps and FAR norms. (bmrda.karnataka.gov.in)

• BIAAPA / airport authorities if the land is near the airport, special restrictions apply (height, land use, noise, environment). (bmrda.karnataka.gov.in)

• Gram panchayat/taluk offices for rural land - these may have simpler permissions, but conversion/CLU (change of land use) is often required for commercial use.

Documents to request (must-have):

• Land-use certificate / Zonal map extract showing the plot’s designated use.

• Sanctioned layout/building plan (if any) and the sanctioning authority’s letter.

• DC conversion / CLU orders when the land was agricultural and needs conversion to commercial/urban use.

• RERA registration for plotted commercial projects (if applicable) and any promoter disclosures.

• Environmental / NOC records (for larger projects - e.g., coastal, lake buffers, forest/ESZ, or industrial uses).

Important: Titles & bankability - Lenders will check approvals, clear title and whether the project complies with zoning before sanctioning a construction loan. If the land’s approvals are weak, you’ll face trouble getting finance.

4. Due diligence checklist - what you must pull before you sign

Documents & checks (print this and take to the site):

• Original mother deed + title chain and Encumbrance Certificate (EC).

• Plot survey/site plan and sanctioned plan (if any).

• Zoning / land-use extract from the Master Plan (showing whether the plot is commercial/mixed).

• DC conversion / CLU orders (if applicable).

• Khata / e-Khata and latest tax receipts (if municipal).

• NOC list required for your intended commercial use (fire, pollution, traffic, BIAAPA if near airport).

• Soil & geotech report - crucial for foundation/basement costs.

• Topography & flood/drainage history - check municipal flood maps / recent history.

• Utilities commitment - proof of power feeder, sewage line, water source and telecom availability.

• RERA / promoter checks - if buying a plotted commercial scheme, verify RERA registration and promoter history.

• Local development plan / road widening notifications - check whether a future road widening project takes part of the plot (this can kill yield).

5. Financial sanity checks

• Buildable GFA (from FSI) × expected net realizable rate per sq ft = estimated revenue.

• Estimate hard construction cost / sq ft + developer overheads + parking & external works = estimated cost.

• Check parking obligation & cost - parking demand for commercial use is high (off-site / basement costs can be large). Factor parking excavation and ramp costs into the per-sq-ft cost.

• Blanket rule: if the site’s access or conversion costs (road widening, CLU, premium FSI purchase) exceed the premium you expect to earn from the location, don’t proceed.

6. Red flags - walk away or pay for deep legal checks

• The seller cannot produce a sanctioned plan / land-use certificate, or the documents contradict each other.

• Approach road is private, seasonal, or subject to dispute.

• Land is in agricultural use with no conversion/CLU history and no clear path to urban approval.

• Pending litigation/attachments visible in EC.

• Environmental/heritage/airport restrictions that limit height or use.

• The promoter asks for a large advance without registered agreements or clear approval timelines.

Next steps - a short on-the-ground workflow

1. Get plot survey + EC + khata and verify the seller’s name and chain.

2. Pull the local Master Plan / zoning map extract for the plot and confirm the planning authority.

3. Ask the planning authority (or check their portal) for applicable FSI/FAR and setback rules for that plot. (NAREDCO)

4. Order a short legal title opinion and a soil/geotech desk review.

5. Run a quick revenue vs cost feasibility using buildable GFA and current market rates (we can help with a template).