Higher FSI to benefit Mumbaikars – Tentative plans announced
The Maharashtra government is considering awarding higher Floor Space Index (FSI) for cluster development in Mumbai, and may announce a re-development policy soon. This might boost re-development of derelict buildings in the city. The index is the ratio of a building’s total floor area to the size of the piece of land upon which it is built.
Sachin Ahir, Minister of State for Housing, said that initially, the policy would extend to projects built on 40-50 acres of land, and a committee would supervise its implementation. If 60-70% of the occupants gave their consent, others would be obliged to agree as well. However, if occupants were in disagreement, the government would acquire land through land acquisition, and compensation would be decided by chief secretary of state.
He mentioned that higher FSI (upto 6) could be given to buildings in areas of high population density, which may benefit around 16,000 buildings presently termed ‘dangerous’. The housing regulator would be functional by 15th August.
Meanwhile, in its latest report, property consultants Jones Lang LaSalle India said that in a 4% jump over 2013, office supply will see an increment of 34.3 million square feet, and office absorption about 27.8 million, owing to improved performance in the IT/ITES sector. Retail real estate and residential absorption would also see improvements, despite piling inventory and slow absorption rates. The industry would benefit from policies such as Real Estate (Regulation and Development) Bill, 2013, Goods and Services Tax, introduction of REITs (Real Estate Investment Trusts).
Source - The Financial Express
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