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MUMBAI , SATURDAY AUGUST 1 7, 201 3, 04 PAGES www. hi ndust ant i mes. com
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Anubhuti Matta
htspecialprojects@hindustantimes.com
A
s per a state govern-
ment announcement
on July 26, redevel-
oping cessed buildings,
those built before September
1969, will be allowed addition-
al FSI (floor space index).
While this may boost redevel-
opment activity, experts
worry that Mumbai will not
have enough infrastructure to
support this increasing num-
ber of homes.
"The increase in FSI will
lead to exactly what happened
with the slum rehabilitation
activity prime areas in the
city were developed, and oth-
ers not even considered for
redevelopment. I don't expect
a significant increase in the
housing stock, and without a
regulation, the fate of this
proposal is unlikely to change
the redevelopment scenario,"
says Pankaj Joshi, executive
director, Urban Design
Research Institute.
"There will be a little pres-
sure on the infrastructure but
it is important that we change
the condition in which people
live," says Sachin Ahir, minis-
ter of state, housing. "We are
going to give a fixed time limit
for tenants to agree to rede-
velopment, which is currently
slow because residents take a
lot of time to agree. However,
supply is slow to catch up,
demand continues to rise."
According to the new rules,
the buildings constructed
before September 1969 will
get more FSI, and carpet area
additional to the minimum
standard of 225 square feet.
(See box: Decoding FSI)
"The new rules will pro-
mote cluster redevelopment
too, since if buildings redevel-
op together, they can use the
extra space around for recre-
ational facilities," says Ahir.
The advantages
Real estate experts say
such incentives will also
attract more builders to rede-
velopment, which they other-
wise find unprofitable due to
the rise in cost of cement,
sand, steel and construction.
"This can be a win-win situ-
ation. Residents will get an
increased minimum carpet
area of 300 sq ft, while
builders will get more space to
plan their projects," says Dilip
Shah from Redevelopment of
Housing Societies, an organi-
sation that helps resolve hous-
ing-related problems.
Some builders say that this
will help create more housing
stock too. Nikhil Bhatia, head
of western region for CB
Richard Ellis (CBRE) South
Asia, a property consultancy
firm, says, "This additional
benefit will open up smaller
plots for redevelopment."
"It is a welcome move but
the city needs a higher FSI
given the shortage of housing
stock and increase in con-
struction costs," says Diipesh
Bhagtani, executive director,
Jaycee Homes, a real estate
construction company.
The concerns
Some builders and experts
are sceptical about the impact
of the decision on both rede-
velopment activity and the
condition of old buildings.
Joshi says that only lesser
populated areas with bigger
plots such as Sion, Parel,
Byculla, Mahim and Dadar
will benefit most from the
move, while densely populated
areas such as Crawford
Market, Bhendi Bazaar, and
chawls will not.
"A negligible increase in
FSI is not a real incentive,"
says Chetan Narain, develop-
er, Narains Group.
Housing activists say it is a
shortsighted approach to
development with fewer
advantages. Activist
Krishnaraj Rao says that resi-
dents of old cluttered build-
ings may get a bigger common
space with better living condi-
tions, but in the long term it
will lead to shortage of
resources like electricity
and water.
cut out and keep
PROPERTY RATES IN MUMBAI
Worli 27000 to 48000
Lower Parel 21000 to 38000
Prabhadevi 26000 to 45000
Shivaji Park 18000 to 35000
WESTERN SUBURBS
Location Rate (per sq ft*)
Bandra West 26000 to 46000
Bandra East 18000 to 27000
Khar East 16000 to 21000
Khar West 23000 to 40000
Santacruz East 13000 to 23500
Santacruz West 18000 to 30000
Vile Parle East 16000 to 21000
Vile Parle West 19000 to 27000
Andheri West 14000 to 18500
Andheri East 13000 to 16000
SOUTH MUMBAI
Location Rate (per sq ft*)
Colaba* 33000 to 48000
Cuffe Parade 35000 to 71000
Nariman Point 58000 to 92000
Churchgate* 32000 to 50000
Marine Drive* 45000 to 70000
Malabar Hill 60000 to 76000
Walkeshwar 38000 to 70000
Nepeansea Road 47000 to 74000
Peddar Road 32000 to 56000
Kemps Corner 36000 to 58000
Warden Road 35000 to 60000
Altamount Road 45000 to 72000
Bombay Central 20500 to 32000
Mahalaxmi 22000 to 42000
SOURCE: KNIGHT FRANK (PLEASE NOTE THAT THE QUOTED RATES ARE THE APPROXIMATE
ASKING RATES AND MAY VARY DEPENDING ON THE MARKET CONDITIONS)*
The increase in FSI for cessed buildings is likely to boost redevelopment of old structures,
but experts worry that Mumbai doesn't have the infrastructure to support these new homes
WATCH THIS SPACE
FSI refers to the ratio of the
total built-up area to the area
of the building's plot. By
increasing it from 2.5 to 3,
as announced, residents of
dilapidated cessed buildings
will benefit the most, and will
be incentivised to opt for
redevelopment.
Currently, there are more
than 15,000 cessed build-
ings, constructed before
1969, which pay a periodic
cess or tax, commonly known
as the repair fund, used for
building maintenance.
Earlier, cessed buildings
were classified under three
categories; A: constructed
before 1940; B: built before
1950; C: built before 1970.
Now, the state has combined
all these categories and allot-
ted them the same FSI.
"It is a disastrous
decision, taken to favour
city builders. The govern-
ment needs to make a long-
term plan to decongest
Mumbai such as improving
connectivity and bringing
other civic amenities before
planning more
construction."
GR VORA, resident of
Sion and pathologist
QuoteHanger
"Only about 1,200 buildings in
Mumbai have been redeveloped in the
last 22 years. If the state gov-
ernment is serious about
attracting real estate
builders to redevelopment,
it should offer more FSI and
other incentives such as
single-window clearances."
ANAND GUPTA,
general secretary, Builders
Association of India
DECODING FSI
ILLUSTRATION: SHRIKRISHANA PATKAR
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