In the latest development, a new development plan for Mumbai that was recently announced by Brihanmumbai Municipal Corporation (BMC) is expected to spur construction of properties and make home prices more affordable. The ‘Development Plan 2034’ has put the focus on the growth of affordable housing and commercial properties, experts said.

BMC will release 3,355 hectares (8,290 acres) of land, equal to nearly 10 Bandra-Kurla complexes. This land was previously designated as a no-development zone, for building houses and commercial complexes in Mumbai and its suburbs, as per news reports.

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. An additional 300 hectares (741 acres) of salt pan land will also be restricted to affordable homes.

On this Shubika Bilkha, Director, The Real Estate Management Institute (REMI) said, “The long-awaited Development Plan 2034 has been recently sanctioned by the Chief Minister Devendra Fadvanis. The DP is focused on a number of development premises of the Government, namely affordable housing, employment creation and meeting the housing needs of our densely populated City. The DP has assumed a per capita housing requirement increase from 9 sq.mt to 18-20sq mts and a more modest residential population growth. The plan aims to release an additional 3,300+ hectares of land currently marked under the ‘no development zone’, increased the much applauded FSI requirement in the Island city to 3 to boost activity and extended commercial FSI towards to 5. An additional allocation of salt pan lands towards the development of affordable housing, where the real need exists has also been given, though clarity is required as to how that stacks up against the CRZ regulations. The DP is anticipated to facilitate the creation of 8 million jobs and 1 million affordable homes.

While the details of the DP need to be further analysed, it will be interesting to understand how we manage green spaces and effectively accommodate additional development zones in an already extremely densely populated City. I am sure there is some cheer among the real estate sector, but as a citizen, I would be keen to understand the infrastructure support available to propel this development activity.”

The floor space index (FSI), or the extent of construction allowed on a piece of land, for both commercial and residential buildings, as per new DP plans. 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.

On this Amit Wadhwani, Director, SAI ESTATE CONSULTANTS added, “The final revised Development plan 2034 will help us as channel partners to become more structured and plan better to deliver better. The plan involves many segments, which were much needed from the development’s point of view. The concept of Affordable housing can be implemented as the plan grants over 2000 hectares along with the additional salt pan land for the development. After several amendments done in the plan, now its focusing on affordable housing in order to keep the trend of purchasing property going on. The development plan also emphasizes on the non-construction area, the theme gardens, pay and park concept, old-age homes, farmers market earmarked etc, leading to maintain the cities greenery in place. Adding to the Development Plan 2034, the Maharashtra government have looked into increasing the floor space and the extension of development of land, across the residential buildings and commercial as well. The implementation of Development Plan 2034 will bring in the easy way of communication not only for real estate but the entire segment hereafter.”

“The much awaited blueprint for Mumbai’s development has finally been delivered. Despite the long wait, the approval of the DP 2034 could be a silver lining amid the recent upheaval and slowdown triggered by regulatory reforms such as the Real Estate (Regulation and Development) Act. 2016 (RERA) and the Goods and Services Act (GST). The move would bring the much-needed stability in the real estate market. Key measures such as significant increase in the FSI for residential development particularly in South Mumbai and the thrust on affordable housing through the opening up no development zones and salt pan land would boost the national vision of ‘Housing for All’. Another unprecedented move is the fillip towards commercial space development. The burning demand for commercial real estate in the space-constraint city has received the government’s attention through increased FSI for building office spaces. While these are our initial reactions, the DP 2034 would have far-reaching implications on Mumbai’s growth over the next two decades, which would need closer introspection in the days to come”, concluded Shishir Baijal, Chairman & Managing Director, Knight Frank India on the just announced Mumbai DP 2034.

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