Will more EV chargers in Gurgaon projects lead to higher costs for builders and buyers? Here’s the math

Going beyond the overarching imperative of ensuring cleaner air and promoting green mobility, what are the economic and financial implications of the change in the Building Code for residents, tenants, and the real estate market in Gurgaon? Here’s what developers and industry insiders said.

What are the implications of FAR exemptions for developers’ capital expenditure?

The EV charging infrastructure has been exempted from floor area ratio (FAR) calculations, which allows developers to add charging facilities to the project without reducing the usable built-up space.

FAR, also known as floor space index (FSI) or floor space ratio (FSR), is the ratio of the gross (or total) floor area of a building to the size of the land on which it is built. By exempting the additional EV infra from the FAR calculation, the state has sought to incentivise builders by protecting their margins.

“By making the EV infrastructure FAR-free, the government has ensured zero loss of the premium saleable area. This completely protects developer margins,” Sudeep Bhatt, director, Strategy, at real estate development company Whiteland Corporation said.

Robin Mangla, president of M3M India, one of Delhi-NCR’s most prominent real estate development companies, said the change in the norms could add an estimated 0.5-2 per cent to the overall project cost to cover upgraded conduits, cabling, load management, and transformer capacities.

Thus, Mangla said, projects with 200-300 units could face capex increases of between Rs 50 lakh and Rs 1 crore, scaling to about Rs 1-3 crore for 500-unit residential projects.

However, later retrofitting could cost up to three to five times more, an avoidable postponement given that more than 2 million EVs were sold in the country in FY 2024-25, he said.

Could buying or renting become more expensive?

Not really. According to developers, standard cost buffers will absorb initial outlays, and end consumers will not experience immediate price shocks.

“The impact on apartment prices is expected to be relatively modest. Across most residential developments, the additional cost may translate to approximately Rs 25-75 per square foot, depending on the project density and charging provisions,” Aman Sharma, founder and managing director of the Aarize Group, said.

Thus, the cost of a 2,000-square-foot apartment could increase by roughly Rs 50,000 to Rs 1.5 lakh, Sharma said.

For commercial properties, Sharma said short-term rental impacts could be a modest Rs 1-3 per square foot per month for premium Grade-A assets.

According to Mangla, EV-ready provisioning for residential projects typically costs between Rs 25,000 and Rs 75,000 per parking slot. Thus, “A 100- to 150-slot residential tower with 20-30 charging points will have a total installation cost of between Rs 15 lakh and Rs 40 lakh,” he said.

Sharma said the cost of fast DC (direct current) chargers ranges from Rs 10 lakh to Rs 40 lakh, and highrise configurations add Rs 3,000-10,000 per slot.

What strategies are developers employing to bring down the additional initial costs?

To offset the upfront capex, developers are looking to enter into deals with specialised charge point operators (CPOs) via long-term leasing and revenue-sharing strategies, industry insiders said.

In these models, the hardware costs are split, and the operational load is lifted off the developer’s shoulders.

Jitender Yadav, director of Roots Developers, said builders were moving to tie up with major players such as Tata Power, Statiq, and Incharz.

“The operator bears the hardware capex while the developer provides the real estate for a cut of the charging margin. The cost of installing these stations can range from Rs 17-20 lakh for a commercial project. For residential projects, the installation price can range from Rs 1 lakh to Rs 2.5 lakh. These partnerships handle everything from technical feasibility to DISCOM (power distribution company) load enhancement,” Yadav said.

According to Mangla: “AC (alternating current) chargers generally cost Rs 30,000 to Rs 1 lakh per unit, and DC fast chargers cost Rs 3 lakh to Rs 15 lakh, excluding electrical upgrades. Some residential communities are already piloting EV charging subscriptions of Rs 500 to Rs 1,000 per month per owner, while office parks charge closer to Rs 2,000 for dedicated access.”

What could be the impact on residents’ welfare associations (RWAs) and managements of highrises?

Existing highrises and RWAs may face complex load limits. Rachit Parikh, business head for Community and Public Charging at EV-charging startup Kazam, provided his analysis of a housing society of 500 families where 10% (50 families) own an EV:

“The ideal case scenario is 50 chargers for 50 families,” Parikh said. “But in practice, factors like load availability, parking space constraints, safety charger installation, and ownership play a role,” he said.

Parikh noted that load ceilings push RWAs towards shared infrastructure. “If the first 50 families receive personal chargers, the next 450 will ask later… Old buildings are not designed for that. One  shared charger for every three four-wheel EVs is ideal,” he said.

Societies will choose between RWA-owned models, in which the association funds the upfront capex and signs service contracts, and  CPO-funded models, in which operators absorb setup costs, maintain the charger, and recover investments through charging rates and advertising, Parikh explained.

For individual owners, home-charging remains the primary route, he said: “The tariff per unit kWh for an AC charger ranges from Rs 8 to Rs 15 and for a DC charger it ranges from Rs 14 to Rs 22… On average, an EV owner with a 30 kW battery pack would charge twice a week, consuming about ~90 kW of energy, i.e, roughly Rs 800 to 1,500 per week.”