Mumbai to see more new constructions with DP boost
Both the Centre and state have been aiming to complete its housing for all mission by 2022mumbai Updated: Apr 26, 2018 10:32 IST
The city can now expect a spurt in construction activities across the city – the development plan (DP) 2034 has opened up 2,230 hectares of no-development zone (NDZ) and saltpan land, in addition to an increase in floor space index (FSI) for old buildings in the island city and commercial complexes across the city.
“We expect at least 5 lakh affordable houses to be created from NDZ and other such redevelopment schemes,” said Sanjay Kumar, additional chief secretary, housing department.
Both the Centre and state have been aiming to complete its housing for all mission by 2022. However in Mumbai, the delay in the release of DP had paralysed the realty sector as many projects were put on hold by the builders. “The DP has addressed the fundamental issue of land shortage,” said Ramesh Nair, CEO and Country Head, JLL India.
The saltpan land, located mostly in the eastern and extended suburbs, has always mired in controversy. While builders have been advocating utilisation of the land, environmentalists warn that it could mean ecological disaster and create a concrete jungle. Anuj Puri, chairman, ANAROCK Property Consultants, said, “The DP is likely to spur real estate activity in the city and also pave the way for the development of much-needed affordable houses in Mumbai.”
The new DP has also increased the FSI for old buildings in the island city to 3, while increasing the in-situ FSI for slum colonies to 4 and also an incentive for revamp of larger slum colonies. In addition, for societies older than 30 years, a 15% additional built-up area has been allowed for each tenement without any premium. “The new DP focuses on construction of affordable homes and is likely to increase supply and provide more choices to the homebuyer,” Farshid Cooper, managing director, Spenta Corporation said.
The FSI for commercial complexes has been hiked to 5. Niranjan Hiranandani, president, National Real Estate Development Council (NAREDCO), said it was a welcome move. “There is an acceptance of the fact that GDP growth will not happen only because of industrial production, but it needs commercial activities too. The FSI hike is expected to encourage employment and economic development,” said Hiranandani.
Ramesh Prabhu, chairman, Maharashtra Societies Welfare Association (MSWA), said the realty prices will come down due to huge stock that could be available in the coming days. “As they have hiked the FSI, the builders will get to build more and they will reduce prices,” said Prabhu. However he says the main concern is how the corresponding infrastructure will cope with the construction.