In what is seen as a boost to commercial real estate, which is currently in bad shape, the revised draft of the development plan (DP) has proposed an FSI of 5 for office spaces in Mumbai.
According to the revised DP, any plot in commercial, residential or industrial zones, measuring more than 3,000 sqm, can avail of an FSI of 5, if it is developed independently for commercial purposes, excluding the shopping spaces.
The floor space index, or FSI, is the number of floors a builder can go up to on a plot. Builders are also being given 30% of the plot area to construct residential units, to incentivise the construction of office spaces and increase job opportunities in Mumbai.
With many offices shifting to the outskirts of the city to cut costs, both analysts and builders have welcomed the move. “After a long time, the commercial market seems to be picking up. New deals are being finalised. The move will encourage builders to construct office spaces within the city,” said Samantak Das, chief economist and director (research & advisory services), Knight Frank India.
Consequently, commercial business districts (CBD) are likely to come up in Dadar, Andheri and Ghatkopar, which witness huge traffic.
Builders claim the location of the centres, along with 30% of plot area for residential units, will encourage them to opt for the scheme.
“The proposal is viable, as it allows us to construct residential units, apart from office spaces. In addition, the realty rates in these areas are very attractive. Dadar, Ghatkopar and Andheri have very good connectivity, which will attract many companies,” said Bhavesh Sanghrajka, chairman and managing director, Shraddha Lifescapes.
Also, while information technology (IT) and information technology-enabled services (ITES) development projects will have an FSI of 5, other financial services affiliated to IT and ITES will get only 80% of the FSI for free. The remaining will have to be purchased for a premium.