Mumbai DP 2034 receives the government’s nod. CW captures industry reactions…

02 May 2018 CW Team

Overall NDZ is 16,700 hectare, of which around 12,900 have now been classified as Natural Area (NA), which includes parts of Sanjay Gandhi National Park, Mangroves, salt pans and parts of Film City and Aarey milk colony, along with a few regions under CRZ.
DP 2034 proposes to unlock 3,700 hectare of public and private land currently tagged as No Development Zones (NDZ) – this massive land unlocking will open new avenues for real estate development.
There is a target to construct 10 lakh affordable homes through unlocking of NDZ – this is a major push for the affordable housing segment, and much needed to accommodate the ever increasing population in the city.
The largest additions to the city's developable land banks in recent history.
FSI levels in the Island City are raised up to 3, in the suburbs FSI is retained at 2.5.

Impact assessment:

Massive real estate activity in the Island City and suburbs.
Highly positive for affordable housing development in the city.
However, if infrastructure development does not keep pace with increased construction, the stress on civic amenities and traffic may worsen in the city.

---
Niranjan Hiranandani, President NAREDCO
For years, Mumbai’s Development Plans focused on residential real estate development. This time around, the focus has been equally placed on commercial real estate, with twin focus – first, on decongesting existing CBD areas as also extending the ‘walk to work’ aspect to newer locations. The Mumbai Development Plan 2034 brings in a serious effort as ensuring the target of affordable homes get constructed within a reasonably short time, given the opening up of various categories of land on which such construction was earlier not allowed. Similarly, there is a acceptance of the fact that GDP growth will not happen only because of industrial production, but commercial activities will play a major role in enhancing GDP growth – the DP shows significant hikes in FSI for commercial, retail and hospitality. Similarly, for financial technology and bio-tech parks, medical and educational hubs. The FSI hike for commercial real estate is expected to not just enhance GDP growth, but also encourage employment and economic development.

---
Jaxay Shah, President, CREDAI National
The decision to unlock a large portion of public and private land as a part of the Mumbai Development Plan will provide a massive boost to the infrastructure activities in the region. This move will add further momentum to the government’s ‘Housing for all’ initiative and is also expected to generate a substantial number of jobs in the sector. We, at CREDAI, are extremely pleased with the decision and laud the Government of Maharashtra and the Chief Minister Devendra Fadnavis for the same. We hope to further contribute to the Affordable Housing segment in the region, having already signed an MOU with the state government pledging the construction of over 9 lac Affordable Houses in Maharashtra.

---
Mayur Shah, Managing Director, Marathon Group and President CREDAI MCHI
The DP-DCR 2034 may have been delayed but presents a very progressive outlook to the way real estate business would get conducted over the next 15 years. It combines regulation with parameters of growth drawn out through empirical modelling that is bound to provide the requisite boosters to the market. Taking ease of doing business forward, the DP-DCR provides special powers to the MC to decide modalities & procedures of approval from an EODB perspective. The FSI benefits have been extended to ongoing projects as well. We welcome the increase in basic FSI for commercial development to 5, which will act as a catalyst for concerted commercial development in Mumbai, besides helping compete other cities of Asia as Financial Hub, thus increasing employment opportunities substantially.

The state has taken the bold decision to retain the 42 open spaces recommended by the standing committee to be deleted and should be commended for keeping Sanjay Gandhi National Park and Aarey Colony out of reach of unscrupulous development. On the other hand, the state has infused additional land parcel for development; the land that falls under No Development Zone (NDZ) category, where the civic body can provide infrastructure, can now be utilized for the purpose of affordable housing as well as creating other amenities under the Special Development Zone (SDZ).

However, we are hopeful that the state/ MCGM would address the issue of high premiums for additional FSI. If addressed well, it can bring affordability, as other input (cement, steel etc) costs are already going up. Overall, it is a very balanced and growth oriented DP-DCR. The initiative will be game-changer for Mumbai’s realty market with the significant impetus given to the affordable housing segment. Most importantly, this DP while spurring residential as well as commercial real estate segments, has not compromised on open spaces of the metropolis and its green cover.

---
Kamal Khetan, Chairman and Managing Director, Sunteck Realty
“The Mumbai development plan (DP) 2034 is a welcome step. The plan has increased the FSI in both commercial and residential spaces, giving the developers more productive use of available land, in line with the global FSI norms. It will also facilitate creation of 8 million jobs and is in alignment with the Modi government’s “Housing for all” mission of affordable housing.

The move will provide a new dimension to the Mumbai’s real estate market, which will be more vibrant activity in near future.

This development plan is an commendable initiative for not only boosting the commercial and residential realty market in Mumbai but also for protecting the open spaces and green cover of the metropolis.

---
Shishir Baijal, Chairman & Managing Director, Knight Frank India on the just announced Mumbai DP 2034
“The much awaited blueprint for Mumbai’s development has finally been delivered. Despite the long wait, the approval of the DP 2034 could be a silver lining amid the recent upheaval and slowdown triggered by regulatory reforms such as the Real Estate (Regulation and Development) Act. 2016 (RERA) and the Goods and Services Act (GST). The move would bring the much needed stability in the real estate market. Key measures such as significant increase in the FSI for residential development particularly in South Mumbai and the thrust on affordable housing through the opening up no development zones and salt pan land would boost the national vision of ‘Housing for All’. Another unprecedented move is the fillip towards commercial space development. The burning demand for commercial real estate in the space-constraint city has received the government’s attention through increased FSI for building office spaces. While these are our initial reactions, the DP 2034 would have far-reaching implications on Mumbai’s growth over the next two decades, which would need closer introspection in the days to come.

---
Ashok Mohanani, VP NAREDCO (West), Chairman EKTA World
The latest Mumbai’s Development plan 2034 is like a breath of fresh air, as for years the plan focused on residential real estate development alone whereas this plan has taken commercial development also into consideration. The increase in FSI for both residential and commercial development is a serious effort to match international norms and development standards. The overall outcome of the plan has been well accepted by the real estate sector as it has opened many opportunities for developers to provide their customers with the best facilities targeting 1 million affordable homes along with the permission of using fly ash as a building material. The plan has also focused on beautification and recreational facilities such as theme gardens, parking areas, old age homes, farmer markets and many more, additionally marking 12,859 hectors as natural areas and listing them under no development zones. As per the plan Maharashtra will release 3355 hectares of land of which 2100 hectares will go for affordable housing and the balance for commercial & retail development, thus also emphasising on GDP growth along with an increase in job opportunities which will lead to strengthening the economy at large and give a boost to the sector.

---
Farshid Cooper, Managing Director, Spenta Corporation
The proposal to increase FSI in new DP plan for island city as well as suburbs is a welcome move. This is likely to increase supply and provide more choices for the homebuyer. Further, the new Development plan has clear cut focus on construction of affordable homes and large parcels of land have been allocated for such development and therefore one can expect supply for homes in this category to increase substantially.

Anuj Puri, Chairman, ANAROCK Property Consultants The government’s approval on the long-pending Mumbai DP 2034 is a welcome move. The DP is likely to spur real estate activity in the city and also pave the way for the development of much-needed affordable houses in Maximum City. Highlights of DP 2034: Overall NDZ is 16,700 hectare, of which around 12,900 have now been classified as Natural Area (NA), which includes parts of Sanjay Gandhi National Park, Mangroves, salt pans and parts of Film City and Aarey milk colony, along with a few regions under CRZ. DP 2034 proposes to unlock 3,700 hectare of public and private land currently tagged as No Development Zones (NDZ) – this massive land unlocking will open new avenues for real estate development. There is a target to construct 10 lakh affordable homes through unlocking of NDZ – this is a major push for the affordable housing segment, and much needed to accommodate the ever increasing population in the city. The largest additions to the city's developable land banks in recent history. FSI levels in the Island City are raised up to 3, in the suburbs FSI is retained at 2.5. Impact assessment: Massive real estate activity in the Island City and suburbs. Highly positive for affordable housing development in the city. However, if infrastructure development does not keep pace with increased construction, the stress on civic amenities and traffic may worsen in the city.--- Niranjan Hiranandani, President NAREDCO For years, Mumbai’s Development Plans focused on residential real estate development. This time around, the focus has been equally placed on commercial real estate, with twin focus – first, on decongesting existing CBD areas as also extending the ‘walk to work’ aspect to newer locations. The Mumbai Development Plan 2034 brings in a serious effort as ensuring the target of affordable homes get constructed within a reasonably short time, given the opening up of various categories of land on which such construction was earlier not allowed. Similarly, there is a acceptance of the fact that GDP growth will not happen only because of industrial production, but commercial activities will play a major role in enhancing GDP growth – the DP shows significant hikes in FSI for commercial, retail and hospitality. Similarly, for financial technology and bio-tech parks, medical and educational hubs. The FSI hike for commercial real estate is expected to not just enhance GDP growth, but also encourage employment and economic development. --- Jaxay Shah, President, CREDAI National The decision to unlock a large portion of public and private land as a part of the Mumbai Development Plan will provide a massive boost to the infrastructure activities in the region. This move will add further momentum to the government’s ‘Housing for all’ initiative and is also expected to generate a substantial number of jobs in the sector. We, at CREDAI, are extremely pleased with the decision and laud the Government of Maharashtra and the Chief Minister Devendra Fadnavis for the same. We hope to further contribute to the Affordable Housing segment in the region, having already signed an MOU with the state government pledging the construction of over 9 lac Affordable Houses in Maharashtra. --- Mayur Shah, Managing Director, Marathon Group and President CREDAI MCHI The DP-DCR 2034 may have been delayed but presents a very progressive outlook to the way real estate business would get conducted over the next 15 years. It combines regulation with parameters of growth drawn out through empirical modelling that is bound to provide the requisite boosters to the market. Taking ease of doing business forward, the DP-DCR provides special powers to the MC to decide modalities & procedures of approval from an EODB perspective. The FSI benefits have been extended to ongoing projects as well. We welcome the increase in basic FSI for commercial development to 5, which will act as a catalyst for concerted commercial development in Mumbai, besides helping compete other cities of Asia as Financial Hub, thus increasing employment opportunities substantially. The state has taken the bold decision to retain the 42 open spaces recommended by the standing committee to be deleted and should be commended for keeping Sanjay Gandhi National Park and Aarey Colony out of reach of unscrupulous development. On the other hand, the state has infused additional land parcel for development; the land that falls under No Development Zone (NDZ) category, where the civic body can provide infrastructure, can now be utilized for the purpose of affordable housing as well as creating other amenities under the Special Development Zone (SDZ). However, we are hopeful that the state/ MCGM would address the issue of high premiums for additional FSI. If addressed well, it can bring affordability, as other input (cement, steel etc) costs are already going up. Overall, it is a very balanced and growth oriented DP-DCR. The initiative will be game-changer for Mumbai’s realty market with the significant impetus given to the affordable housing segment. Most importantly, this DP while spurring residential as well as commercial real estate segments, has not compromised on open spaces of the metropolis and its green cover. --- Kamal Khetan, Chairman and Managing Director, Sunteck Realty “The Mumbai development plan (DP) 2034 is a welcome step. The plan has increased the FSI in both commercial and residential spaces, giving the developers more productive use of available land, in line with the global FSI norms. It will also facilitate creation of 8 million jobs and is in alignment with the Modi government’s “Housing for all” mission of affordable housing. The move will provide a new dimension to the Mumbai’s real estate market, which will be more vibrant activity in near future. This development plan is an commendable initiative for not only boosting the commercial and residential realty market in Mumbai but also for protecting the open spaces and green cover of the metropolis. --- Shishir Baijal, Chairman & Managing Director, Knight Frank India on the just announced Mumbai DP 2034 “The much awaited blueprint for Mumbai’s development has finally been delivered. Despite the long wait, the approval of the DP 2034 could be a silver lining amid the recent upheaval and slowdown triggered by regulatory reforms such as the Real Estate (Regulation and Development) Act. 2016 (RERA) and the Goods and Services Act (GST). The move would bring the much needed stability in the real estate market. Key measures such as significant increase in the FSI for residential development particularly in South Mumbai and the thrust on affordable housing through the opening up no development zones and salt pan land would boost the national vision of ‘Housing for All’. Another unprecedented move is the fillip towards commercial space development. The burning demand for commercial real estate in the space-constraint city has received the government’s attention through increased FSI for building office spaces. While these are our initial reactions, the DP 2034 would have far-reaching implications on Mumbai’s growth over the next two decades, which would need closer introspection in the days to come. --- Ashok Mohanani, VP NAREDCO (West), Chairman EKTA World The latest Mumbai’s Development plan 2034 is like a breath of fresh air, as for years the plan focused on residential real estate development alone whereas this plan has taken commercial development also into consideration. The increase in FSI for both residential and commercial development is a serious effort to match international norms and development standards. The overall outcome of the plan has been well accepted by the real estate sector as it has opened many opportunities for developers to provide their customers with the best facilities targeting 1 million affordable homes along with the permission of using fly ash as a building material. The plan has also focused on beautification and recreational facilities such as theme gardens, parking areas, old age homes, farmer markets and many more, additionally marking 12,859 hectors as natural areas and listing them under no development zones. As per the plan Maharashtra will release 3355 hectares of land of which 2100 hectares will go for affordable housing and the balance for commercial & retail development, thus also emphasising on GDP growth along with an increase in job opportunities which will lead to strengthening the economy at large and give a boost to the sector. --- Farshid Cooper, Managing Director, Spenta Corporation The proposal to increase FSI in new DP plan for island city as well as suburbs is a welcome move. This is likely to increase supply and provide more choices for the homebuyer. Further, the new Development plan has clear cut focus on construction of affordable homes and large parcels of land have been allocated for such development and therefore one can expect supply for homes in this category to increase substantially.