Mumbai frees up land to build 10 Bandra-Kurla complexes
Development Plan 2034 will release 3,355 hectares for offices, cheap homes
The new development plan for Mumbai is expected to spur construction of properties and make home prices more affordable. The ‘Development Plan 2034’ has put the focus on growth of affordable housing and commercial properties, experts said.
The Brihanmumbai Municipal Corporation (BMC) will release 3,355 hectares (8,290 acres) of land, equal to nearly 10 Bandra-Kurla complexes. This land was previously designated as nodevelopment zone, for building houses and commercial complexes in Mumbai and its suburbs.
About 2,100 hectares (5,189 acres) of it will be earmarked for affordable housing under the new development plan, Ajoy Mehta, municipal commissioner of Mumbai, said in a press conference on Wednesday. An additional 300 hectares (741 acres) of salt pan land will also be restricted for affordable homes.
The Mumbai development plan has increased the floor space index (FSI), or the extent of construction allowed on a piece of land, for both commercial and residential buildings.
In the island city, the FSI has been increased from 1.33 to 3 and 5 for residential and commercial properties, respectively. In the suburbs, it has been increased from 2 to 2.5 for residential properties and from 2.5 to 5 for commercial properties.
“It is a welcome move for home buyers since the increase in the
FSI will ensure supply and lead to better affordability. Affordable housing is a focus and there is adequate provision for land parcels being earmarked for this,” said Amit Bhagat, managing director and chief executive at ASK Property Investment Advisors, a fund manager.
“For years, Mumbai’s development plans have focused on residential real estate. This time around, the focus has been equally placed on commercial properties, with a focus on decongesting the central business district areas as also extending the ‘walk to work’ aspect to newer locations,” said Niranjan Hiranandani, managing director of Hiranandani Constructions.
He said the new plan brings in a serious effort to ensure that the target of affordable homes is met within a reasonably short time.
Ramesh Nair, CEO and country head at property consultancy JLL, said earlier, the FSI in the island city was lower than the effective FSI allocated to the suburbs, which has now been amended. “The FSI in the island city has now been raised above the FSI in the suburbs, which will lead to higher potential supply,” Nair said.
However, Anuj Puri, chairman, Anarock Property Consultants, was concerned that the infrastructure may not be able to keep pace with the surge in real estate activity in Mumbai, the world’s second most crowded city. “If infrastructure development does not keep pace with increased construction, the stress on civic amenities and traffic may worsen in the city,” Puri said.
He said he wanted to understand how the salt pan developments will take place, given the coastal regulation zone (CRZ) rules. “My understanding is that the CRZ rules will have been relaxed to accommodate affordable housing on salt pans,” he added.