Chief Minister of Maharashtra, Devendra Fadnavis, who also handles the urban development portfolio, has taken several steps aimed at boosting the real estate sector in the state, particularly in Mumbai after taking the reins of power in the year 2014. Maharashtra has been the first state to roll out the new housing regulator and has also lowered the consent requirement for redevelopment of old and dilapidated structures.
Has Fadnavis done enough to revamp the real estate sector? Consent has been a major hurdle towards redevelopment of old buildings in Maharashtra, particularly in Mumbai. Mumbai alone possesses close to 20, 000 dilapidated structures and many of them are located in prime areas. However, lack of any form of consensus among the residents has led to these buildings being deprived of necessary redevelopment. To tackle this issue, Fadnavis addressed the state assembly on the 31st of July, 2017, stating that the Government will be making an amendment to the Maharashtra Apartment Ownership Act for lowering consent requirement to 51% as compared to the 70% at present. Experts feel that this is possibly the sole way to usher in a revival for redevelopment projects.
Redevelopment projects often face major delays and builders did not quite deliver on their promises. The concerns over builders not delivering projects in a timely manner and also diversion of funds will now be addressed through RERA. The state has also taken steps to offer incentives to builders for taking up redevelopment projects in the suburbs of Mumbai and has already announced that development control rules would undergo a revision. This will lead to the FSI (floor space index) being scaled up to anywhere between 3-4 for these neighborhoods. FSI is the ratio between the area covered by the plot on which the building stands and the built-up area.
A higher floor space index will enable developers to add more floors while redeveloping any old structure. A policy is being considered on this matter by the Government. The Chief Minister did not also yield to requests from developers for extension of the deadline for registering ongoing projects. The Government has also directed the Mumbai development authority for creating a blueprint geared towards freeing up salt pans for better housing development. The Development Plan 2014-2034 was cleared by the BMC last week and this lays the foundation for unlocking the potential of these salt-making pits. Mumbai and nearby areas possess a whopping 2, 177 hectares across salt pans (estimated) and 256 hectares out of this can be developed according to the MMRDA (Mumbai Metropolitan Region Development Authority).
According to the Managing Director at the Hiranandani Group, which is based in Mumbai, Niranjan Hiranandani, this will be a major boost for housing in the city. However, environmentalists have slammed this move, calling it catastrophic and detrimental towards the preservation of nature. Many experts also feel that Fadnavis has miserably failed in terms of environmental regulations and clearances while some praise his decisions. Hiranandani has also stated that the Government has given a major boost for real estate in Mumbai by clearing major projects like the Navi Mumbai Airport, metro projects and coastal road.
