Density bonus is a type of development incentive. This incentive allows developers to build beyond standard zoning limits.
Examples include additional floors or units if specific conditions are met.
Density bonuses differ from other incentives such as tax abatements or expedited permits. They directly increase the potential profitability of a project through increased building volume, unlike tax abatements which reduce costs or expedited permits which shorten development time.
In Bangkok, developers might receive a density bonus for including affordable housing units, whereas tax abatements may be granted for incorporating green spaces.
Popular features of density bonuses include affordable housing units, public amenities, and green spaces. Affordable housing units address city housing shortages.
Public amenities like parks or community centers benefit the wider community. Green spaces improve urban environments, notable examples include rooftop gardens in Bangkok condominiums.
Common features of density bonuses encompass increased floor area ratio (FAR), height allowances, and reduced parking requirements. Increased FAR permits larger buildings on a given lot size.
Height allowances enable developers to construct taller buildings. Reduced parking requirements decrease the number of parking spaces developers must provide, seen in downtown Bangkok where public transportation accessibility is high.
Unusual features of density bonuses include preservation of historical sites, inclusion of public art, and transit access improvements. Preservation of historical sites ensures cultural heritage is maintained.
Public art contributions beautify neighborhoods. Transit access improvements facilitate better public transportation links, important for projects near BTS or MRT stations in Bangkok.
Unique features of density bonuses involve customizable zoning conditions, partnership opportunities with city planning departments, and flexible setback requirements. Customizable zoning conditions allow for project-specific adjustments.
Partnership opportunities with city planning departments offer developers a chance to influence future urban development plans. Flexible setback requirements can lead to more creative architectural designs.
Density bonuses offer a direct path to increasing project scale and scope, distinguishing them from other incentives that typically focus on cost reduction or process efficiency. For instance, while both expedited permits and density bonuses aim to enhance project viability, density bonuses uniquely allow for an increase in the physical size or capacity of a real estate project, directly impacting its revenue potential through additional units or spaces for lease.
For more detailed explanations on real estate terms and incentives, refer to our glossary about Bangkok real estate.