BMC to incentivise developers for housing redevelopment
Real Estate

BMC to incentivise developers for housing redevelopment

The Brihanmumbai Municipal Corporation (BMC) will offer various incentives to real estate developers for the redevelopment of small houses on its leased lands under a new policy.

Under the new policy, developers can now avail additional development rights and relaxation in the payment of premium. The new policy was approved by BMC last week.

According to officials, there are many dilapidated buildings under BMC limits that are over 50 years old. With no benefits in sight, developers believed that redevelopment of such properties was not financially viable.

Under the old policy, redevelopment of old properties that are constructed on BMC owned land and given on long term leases was not being undertaken. The majority of these houses are between 225 and 300 sq ft. However, developers would have to provide flats with at least 325 sq ft area while redeveloping these properties, irrespective of the earlier flat size. In such cases, the developers could not get the sale component due to inadequate floor space index (FSI), officials told the media.


4th Indian Cement Review Conference 2021

17-18 March 

Click for event info


As a part of the new policy, developers will be offered 50 to 70% additional incentive areas on redevelopment. Developers can also pay their premiums in five instalments. Previously, the premium had to be paid in two instalments—50% with the grant of the commencement certificate and the other part after obtaining the occupation certificate.

The policy has also brought down interest rates on the delay of premium payment from 18%. In case of delay, developers will have to pay interest between 8.5% and 12%.

The new policy also provides relief in terms of the redevelopment deadline. Earlier, builders had to complete the redevelopment in three years. This can now be undertaken between five years and seven years, depending on the plot's size in question.

Image Source


Also read: BMC nod for 50% premium cut to realty firms

Also read: L&T to redevelop Naigaon chawl

The Brihanmumbai Municipal Corporation (BMC) will offer various incentives to real estate developers for the redevelopment of small houses on its leased lands under a new policy. Under the new policy, developers can now avail additional development rights and relaxation in the payment of premium. The new policy was approved by BMC last week. According to officials, there are many dilapidated buildings under BMC limits that are over 50 years old. With no benefits in sight, developers believed that redevelopment of such properties was not financially viable. Under the old policy, redevelopment of old properties that are constructed on BMC owned land and given on long term leases was not being undertaken. The majority of these houses are between 225 and 300 sq ft. However, developers would have to provide flats with at least 325 sq ft area while redeveloping these properties, irrespective of the earlier flat size. In such cases, the developers could not get the sale component due to inadequate floor space index (FSI), officials told the media.4th Indian Cement Review Conference 202117-18 March Click for event info As a part of the new policy, developers will be offered 50 to 70% additional incentive areas on redevelopment. Developers can also pay their premiums in five instalments. Previously, the premium had to be paid in two instalments—50% with the grant of the commencement certificate and the other part after obtaining the occupation certificate. The policy has also brought down interest rates on the delay of premium payment from 18%. In case of delay, developers will have to pay interest between 8.5% and 12%. The new policy also provides relief in terms of the redevelopment deadline. Earlier, builders had to complete the redevelopment in three years. This can now be undertaken between five years and seven years, depending on the plot's size in question. Image Source Also read: BMC nod for 50% premium cut to realty firms Also read: L&T to redevelop Naigaon chawl

Next Story
Infrastructure Urban

Fire safety in high-rise façade systems

The external wall system (EWS) is made up of the outside wall of a building, including cladding and insulation. Of focus now is the fire safety of such external wall systems in multi-storeyed buildings where fire hazards are considerably higher than low-rise buildings. Main and sub-systems of EWS are to be considered holistically to understand the risk of fire loads created due to the design and materials used in the EWS where fire passive and resistant systems are absent, or lesser in content. External Wall System Components The EWS includes all components such as framing, glazing ..

Next Story
Real Estate

Sunteck is leading the way in luxurious, sustainable urban development

A trendsetter in creating iconic destinations with sophisticated design and state-of-the-art amenities such as Signature Island, Signia Isles and Signia Pearl, Mumbai-based Sunteck Realty focuses on a city-centric development portfolio of about 52.5 million sq ft spread across 32 projects. Kamal Khetan, Chairman and Managing Director, Sunteck Realty, shares more on the company’s projects, prospects and plans in conversation with R SRINIVASAN. Excerpts:You have projects in the heart of Mumbai; in the Eastern suburbs as well as Naigaon in the Western suburbs. So how do you ..

Next Story
Infrastructure Urban

Vedanta Aluminium CEO John Slaven named IAI Vice-Chairman

Vedanta Aluminium, producer of aluminium, announced the appointment of its CEO, John Slaven as Vice-Chairman of the International Aluminium Institute (IAI). In this capacity, Slaven will spearhead global initiatives aimed at fostering the sustainable transformation of the aluminium industry and promote the critical role of aluminium in enabling the energy transition to a Zero Carbon modern world. Established in 1972, the International Aluminium Institute (IAI) is the sole organization representing the primary aluminium industry worldwide. It is tasked with enhancing awareness of the industry'..

Hi There!

Now get regular updates from CW Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Construction News on Whatsapp! Enjoy

+91 81086 03000

Join us Telegram