In a key move that will impact the real estate market in Mumbai considerably, the BMC (Brihanmumbai Municipal Corporation) has released a new transition policy as part of its initiative to execute the Mumbai Development Control & Promotion Regulations 2034. Under this new transition policy, real estate developers who have already garnered approvals under the Development Control & Promotion Regulations (DCPR) 1991, can get their plans converted as per the new guidelines without having to go back to the municipal commissioner for their ongoing real estate projects. The BMC has previously assured developers that it will consider previous concessions provided for project completion.
As per this new policy, in case fire check floor (6 ft high) is built on site going by the chief fire officer’s NOC and has been approved under DCPR 1991, this can continue free of any FSI for DCPR 2034 which stipulates that a fire check floor is not needed. Those which have already been built will be demolished accordingly. Under DCPR 2034 blueprint, staircases for projects which are ongoing, will have to be 5 ft as compared to 4 ft. This policy will help in switching to new DCPR without any hassles as per developers.
25% of visitor parking was compulsory under DCPR 1991 and this has been lowered to 5% under DCPR 2034 since Mumbai now has smaller plots and providing this quantum of parking does not ensure feasibility. Real estate players also refrain from offering such parking since they will always sell units to buyers. Previously, the whole TDR (transferable development right) was allowed by way of slum TDR which was readily available and was used to lower open space deficiency premium. However, under DCPR 2034, out of TDR that is permitted, 50% can be slum TDR and the rest has to be reservation TDR. Yet, those who have used 100% slum TDR will not have to lower this to 50% so that development of projects can continue unhindered.
Mumbai’s real estate sector has welcome these policy changes since they can continue smoothly with their ongoing projects and can easily switch to the new regime without major hassles as was previously feared. Mumbai is witnessing the development of several premium residential projects like Lodha Amara, Piramal Mahalaxmi and Rustomjee Urbana Azziano L Wing to name only a few.