Real estate projects in Mumbai stalled due to changed DCR rules
Many real estate projects in Mumbai‘s western suburbs have been halted in recent times due to the sluggish demand and new Development Control Rules (DCR).
Brihanmumbai Municipal Corporation (BMC) recently came up with a list of delayed projects in Mumbai and the western suburbs accounted for 202 of the 326 stalled projects in the city.
The main reason being pointed out is the changes made in DCR. The old DCR allowed builders to exclude constructions such as balconies and ducts from FSI (floor space index). The new norms require them to pay a premium for availing higher FSI, which has triggered a sharp increase in real estate values.
Transactions have slowed down to a great extent as values have soared. The Khar, Bandra and Santa Cruz belt have witnessed huge number of stalled projects.
The general economic slowdown and sluggish demand have deteriorated the situation and many developers have fallen out with their business partners and have suspended under construction projects.
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