The execution of the Coastal Regulation Zone or CRZ Notification 2018 will definitely give a major boost to Mumbai’s real estate sector as per reports. The Central Government’s decision to release new regulations may lead to increases in home supply. Under the new regulations, developers may get FSI (floor space index) up to 3 for Mumbai as compared to 1.33 currently based on the road width. For the suburbs of Mumbai, this may increase to 2.7 from 1. The Notification allows realty activities up to 50 m of the high tide line in the city and temporary structures such as change rooms, shacks and toilet blocks at just 10m from the tide line.
As per experts, those residing in old structures will benefit since redevelopment was previously stuck on account of CRZ guidelines. This will now be fast-tracked according to them. The new regulations will facilitate redevelopment for several projects across the slums and also for old and worn-out buildings. These projects were previously stuck and may get releases in the near future under the revised CRZ blueprint. Experts also feel that this move will lead to more affordable housing supply which will benefit the Mumbai real estate market in terms of higher buyer interest, sales figures and reasonable property prices while there will also be a boost for tourism in the bargain.
This notification will also lead to the release of ample housing inventory in localities with sea fronts and this will increase supply drastically, thereby leading to price drops which will spark buyer interest and help developers clear out unsold housing stock. The price correction in Mumbai will definitely benefit prospective homebuyers and boost the market from a long-term perspective.