Mum­bai Vi­sion

Mum­bai, the city of seven is­lands is In­dia’s fi­nan­cial cap­i­tal and also coun­try’s most ex­pen­sive hous­ing mar­ket.­ran­jan hi­ranan­dani, cmd-hi­ranan­dani Com­mu­ni­ties gives his per­spec­tive on Mum­bai real-estate.

Realty Plus - - Editor-In-Chief Note -

The con­sis­tent prop­erty price rise in Mum­bai is repli­ca­tion of the equa­tion price equals de­mand ver­sus sup­ply. As sup­ply is lim­ited, given the is­land city’s space short­age as also poli­cies that re­strict how much space can be con­structed on a plot of land; Mum­bai has al­ways wit­nessed price up­ward move­ment.

The maze of reg­u­la­tions from height re­stric­tions due to Air­port Author­ity of In­dia, con­straints and re­straints due to CRZ & Man­groves, pol­icy on af­ford­able hous­ing al­low­ing 60sqm car­pet area for rest of the coun­try and half that, 30sqm in Mum­bai and bu­reau­cratic de­lays, are some of the rea­sons. When we talk about De­vel­op­ment Plans for a mega­lopo­lis like Mum­bai – it has to come up with path-break­ing new ini­tia­tives, plug some gaps that the city has been suffering from for long and cre­ate some­thing new that is ‘iconic’.

Ma­ha­rash­tra Govern­ment’s move to use more of Mum­bai’s mill land for af­ford­able hous­ing (Amend­ments to DCR 58) is wel­come. Speedy plan­ning and quick im­ple­men­ta­tion are the keys for this to suc­ceed. For in­stance, Hous­ing for All by 2022 is a won­der­ful ini­tia­tive which in­clude sub­ven­tion in home loans taken for buy­ing af­ford­able homes. Ru­ral fund al­lo­ca­tion un­der PMAY has been raised from Rs 15,000 crore to Rs 23,000 crore, with the target to build 10 mil­lion homes by 2017-18. The ac­tual con­struc­tion of such large num­bers will be pos­si­ble when pri­vate sec­tor de­vel­op­ers join hands with the govern­ment, and work on a Public Pri­vate Part­ner­ship (PPP) model.

How­ever, eco­nom­i­cal hous­ing is a com­pli­cated is­sue, and does not have a sin­gle so­lu­tion that fits all mi­cro­mar­kets in Mum­bai. The pri­mary chal­lenge is avail­abil­ity of land at price-points. While the state and cen­tral gov­ern­ments both have land in Mum­bai on which such projects can take place, re­cent ef­forts to iden­tify such land have not been as suc­cess­ful as one would have ex­pected. So, the work­able al­ter­na­tives in­clude SRA projects, but even in such projects there are is­sues which need to be sorted out. For ex­am­ple, Dhar­avi is a huge swath of land, lo­cated in a cen­tral lo­ca­tion. So, any planned re-de­vel­op­ment will have a ma­jor im­pact, and will en­sure not just proper eco­nomic growth but also planned ur­ban re­struc­tur­ing, which will ob­vi­ously be good for the city. Clus­ter Re­de­vel­op­ment is an­other way to in­crease the num­ber of in­di­vid­ual build­ings or houses in a re­de­vel­op­ment pro­posal. With larger space to de­velop, com­mon util­ity spa­ces can be shared among many. It en­ables cen­tral­ized ac­cess from a traf­fic per­spec­tive, higher floors as clus­ter in­creases the space for con­struc­tion at ground level in ef­fect al­low­ing the build­ing to soar higher. One way of look­ing at this is it pro­motes the spirit of co­op­er­a­tion and from a fis­cal per­spec­tive, it is about the ad­van­tages of economies of scale.

the first ini­tia­tive has to be proper plan­ning, be­gin­ning with the city’s De­vel­op­ment Plan. then, tax­a­tion ben­e­fits, re­duced time for per­mis­sions and clear­ances, higher fsi, sin­gle win­dow clear­ances and most im­por­tantly , avail­abil­ity of land at an af­ford­able price-point.

dr. ni­ran­jan hi­ranan­dani

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