Increased FSI to boost demand for ‘ready to move in apts’: Developers

MUMBAI: The city builders welcomed the move of increased Floor Space Index (FSI) for residential buildings stating that it would increase the demand for ready to move in apartments and create affordable housing. On Monday, the city builders said the move of increased FSI listed in the Mumbai Development Plan 2034 would help in rationizing the real estate price in the city. "Today, selected pockets in the city have higher real estate prices. Due to this, many home buyers refuse to purchase flats in few areas. The move would change this perception and would lead to overal development in the real estate market," said Nayan Shah, owner of Mayfair Housing. The builders also said the overal demand for ready to move in apartmemts. "For the past five years, there has been a slump in the supply of new projects (ready to move in apartments). This would happen as the premium for the said flats would increase, which would create a demand for such apartments," added Shah. Other builders also said the increased FSI would create affordable in the Mumbai Metropolitan Region (MMR) region. "The government has relooked into the need for increased FSI in the city by taking a wise decision. This will also boost the real estate market and create large amount of affordable housing," said Dharmesh Jain, Chairman and Managing Director of Nirmal Lifestyle.

Few city builders also said it is a marginal incrase in the FSI which would not offer a huge change in the real estate market. "The FSI for the residential buildings has been increased from 2 to 2.5. This increased FSI depends on the width of the road. We will be able to know it's advantage once we would receive the proposal on paper," said Mayur Shah, MD, Marathon Group.