1) Introduction
On 13 August 2025, significant amendments were introduced to the Planned Areas Zoning Regulation (the "Regulation").
Broadly, these amendments concern mandatory social facilities for large-scale developments, changes to floor area ratio ("FAR") and building coverage ratio ("BCR") calculations, and residential design requirements. We summarized below some of the key changes.
2) New Mandatory Social Facilities for Large-Scale Developments
Residential Projects: For developments with a construction area exceeding 15,000 m² and more than 150 units, provision of a gardened day-care facility is now mandatory.
Mixed Residential + Commercial Projects: For developments with a construction area exceeding 25,000 m² and more than 250 units, provision of a family health center is now mandatory.
These obligations will not apply to projects for which a building permit application was submitted before the amendment date, urban transformation projects with an already notarized construction contract, or projects tendered by public institutions prior to the amendment date.
These new obligations will directly impact the cost and site planning of large-scale developments. Accordingly, such social facility requirements will need to be considered at the early stages of project development.
3) Areas Excluded from FAR and BCR Calculations
Two new exemptions have been added to the list of areas excluded from the maximum 30% non-FAR allowance:
a) Up to 150 m² of day-care facilities in residential parcels;
b) Family health center areas required in residential + commercial mixed use parcels.
These areas will also be excluded from BCR calculations, provided they remain within the maximum size limitations specified in the Regulation.
4) Conditional Permission for Studio (1+0) Apartments
Studio apartments (1+0), previously prohibited, may now be developed for up to 20% of the independent units in a parcel, provided that a sleeping niche is incorporated into the living room with the sizes specified in the Regulation.
This change will help meet demand from investors for small residential units. However, given the 20% cap, project typology should be carefully balanced and marketing strategies should be aligned accordingly.
5) Renovation Permits in Areas Without a Zoning Plan
While the rule that no building permits can be issued in areas without an approved zoning plan remains in place, renovation permits may now be granted for existing buildings with an occupancy permit (iskan), provided that the building footprint, FAR, total construction area, eaves height, and intended use remain unchanged, and all necessary structural and fire safety measures are implemented.
This change creates an important window of opportunity for functional improvements and value enhancement in existing building stock, subject to strict compliance with structural and fire safety requirements.
6) Enhanced Accessibility Requirements for the Elderly
Local authorities are now obliged to take accessibility measures for the elderly as well as for persons with disabilities. In the same vein, elderly care facilities must now include handrails in halls and corridors, and building entrance doors must feature distinctive materials or colors.
7) Conclusion
We recommend that our clients conduct a proactive compliance review of both ongoing and planned projects in light of these amendments. Failure to do so could result in unforeseen costs, permit delays, or loss of saleable area due to mandatory social facilities arising later in the project development process.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
