Not everyone is happy with the decision to bring in a new development plan (DP) for Mumbai. The four-month wait for the new DP, which will come into effect almost a year later, will hit the already-paralysed realty sector hard, claim experts.
After announcing the decision, chief minister Devendra Fadnavis tweeted, “To ensure there is no misuse of the existing DP during these four months...strictest of two shall hold true.” The statement means the scrapped DP, too, will be referred to while passing any proposal, to check the reservation for the plot.
“This will lead to uncertainty among developers. They will be unable to launch new projects,” said Anshuman Magazine, chairman and managing director, CBRE South Asia Pvt Ltd, a real estate consultancy firm.
Gulam Zia, executive director, advisory, retail and hospitality, Knight Frank India Limited, another consultancy firm, said, “All transactions will come to a standstill in the interim period. Developers won’t send their plans for approval, and the authorities, too, will take long to pass the plans that were sent earlier. While sellers will wait because they don’t know the real value of their property, buyers, too, won’t hurry till there is clarity. The confusion will halt all new launches for a year or two.”
Bhavesh Sanghrajka, chairman and managing director, Shraddha Lifescapes, said, “Framing a new DP will take time and officials will not clear new files till it comes into effect. The scenario is disturbing,” said Sanghrajka.