Mumbai real estate gets a boost from new rules
- Aurangabad arms haul case: MCOCA court convicts 12 including Abu Jundal
- Rajnath Singh to visit Pakistan in August, attend Saarc meet
- Indigo flight makes emergency landing in Mumbai after passenger creates ruckus
- Assam floods: Sonowal directs ministers to visit constituencies as situation worsens
- Bhagwant Mann: Didn't breach security, even TV channels broadcast from Parliament
The amendments to the Development Control Rules (DCR) for Mumbai announced by the Maharashtra government earlier this week will not only ease supply of new apartments into the market, but also enable more realistic land valuations, expect real estate consultants.
Though the new norms could impact developers' margins, analysts say it will also mean pricing based on carpet area, bringing in more transparency and fair practice in the sector. Developers, too, have welcomed the move, stating it will bring everyone on a level playing field.
The year 2011 was a damp squib for the real estate sector in Mumbai. Apart from Reserve Bank of India tightening the noose over lending, developers also faced the wrath of local regulatory authorities. There were very few approvals given to projects, leading to a pause on fresh supply of apartments in the market.
In 2011, a mere 19,470 residential units were launched in Mumbai, a drop of 65% compared to 54,968 units launched in 2010, according to data compiled by Eyestate, a joint initiative by Knight Frank India and Indicus Analytics. Under the new DCR, flower beds, balconies, terraces and other areas, which were free of Floor Space Index (FSI) calculations, will now form a part of FSI calculation in lieu of premium levied from builders. FSI is the ratio between the built up area allowed and plot area available.
According to the new rules, developers will be allowed to develop 35% of the plot area over and above the permissible FSI for residential projects and 20% for commercial projects. To gain this extra developable area, they will have to pay 60% of the ready reckoner rate in case of residential projects and 100% in case of commercial development. Ready reckoner rates are primarily used to calculate the market value of flats for stamp duty and registration charges.
- The amended act legalises child labour while claiming to do the opposite
- The concept of private members’ bill is central to a deliberative democracy
- Mahasweta Devi drew imaginary landscapes to narrate stories of the oppressed
- With the latest figures on industrial output, the case for a stimulus is pressing
- An open letter to new students entering Jawaharlal Nehru University
- Irom Sharmila calling off her fast against the AFSPA reflects the state’s failure to engage