The draft plan has also proposed a permissible FSI of 4.00 for affordable housing projects aimed at bringing down the percentage of land cost ..
The long-awaited Mumbai Draft Development Plan (DP) 2014-2034 is in the final stages of approval and likely to be implemented this year. Keeping in line with the national objective of ‘Housing for All’, the Mumbai DP also has detailed provisions for affordable housing and the opening of additional land resources in No Development Zone (NDZ) and salt pan lands to make affordable housing a reality in Mumbai.
“We expect increased participation in infrastructure and affordable housing projects from private sector developers. We believe that the upcoming DP would not only decide the spatial framework of the city but also enhance plot potential with updated Floor Space Index (FSI) and Transfer of Development Rights’ (TDR) norms in the island city. However, in our opinion, the proposed FSI is much less than the international standards and unlikely to bring any major change in the skyline of the city,” says Surabhi Arora, Senior Associate Director, Research, Colliers International India.
No Development Zone (NDZ) land opened up for affordable housing
According to a Colliers Research report, to support and achieve the national objective of ‘Housing for All” by 2022, provisions have been made in the DP to open up additional land for affordable housing projects to target the construction of 0.5 million homes. Around 3000 ha of land resources have been amassed by clubbing land that comes under the NDZ (land earmarked for future development), recreational and tourism development area and salt pan lands. These land reserves are located at prime locations in central Mumbai, suburbs and the island city.
The government is encouraging participation of private players in infrastructure projects through several financial models such as PPP, Build Operate Transfer (BOT) and Value Capture Financing (VCF). Developers in cities like Pune have taken part in the development of infrastructure projects situated along their residential and commercial developments to enable timely completion and thus enhance the sale factor of their projects by providing improved connectivity. Developers in Mumbai should also get on board and invest in infrastructure projects that will help boost their sales in the long term.