The proposal in the Mumbai Draft Development Plan (DP) 2014-2034 to open up “no-development” zones for affordable housing will encourage the Public Private Partnership (PPP) model between developers and the government, said a report from global real estate services company, Colliers International Group Inc.
Since most land parcels are in prime locations, there could be affordable housing supply within the city centres in the coming years, the study added.
According to a TransUnion Cibil research report released earlier this month, Maharashtra is the top state with the highest number of affordable housing loan accounts (6.53 lakh) opened in the last five years.
“We believe that the upcoming DP would not only decide the spatial framework of the city but also enhance plot potential with updated Floor Space Index (FSI) and Transfer of Development Rights’ (TDR) norms in the island city. However, in our opinion, the proposed FSI is much less than the international standards and is unlikely to bring any major change in the skyline of the city,” said the Colliers report.
In line with central government’s mission of “Housing for All” by 2022, the re-draft of the DP has made provisions for construction of 5,00,000 homes. About 3,000 hectares of land has been allocated that include real estate that had previously been marked as no-development zone, salt pan land and tourism development areas. These land reserves are located at prime locations.
“The DP also proposed a permissible FSI of 4.00 for affordable housing projects aimed at bringing down the percentage of land cost per residential unit. In our opinion, the DP norms are well aligned with the central government norms to give a push to affordable housing supply in the land-starved city like Mumbai,” the Colliers report added.