 "Extending cut off date for slums is policymakers' gift to realty sector: Gulam Zia")
Maharashtra government's recent decisions including regularising illegal slums that were set up till 2000 is expected to revive the Mumbai's realty sector. In an interview with Sanjay Jog, Knight Frank India Executive Director - Advisory, Retail & Hospitality Gulam Zia explains its importance.
Will the Maharashtra government's decision to extend cut off date for slums in Mumbai to January 1, 2000 from January 1, 1995 give a much needed boost for the realty sector?
Most of the development in the land-locked city is possible only due to redevelopment schemes. The huge FSI generated on the back of this policy shift will give a tremendous fillip to the real estate industry. This can be considered as a gift to the realty sector by the policy makers.
Will this expedite redevelopment process and thereby help increase the housing stock?
This change will obviously mean higher densities and additional FSI in the city. All this will help in creation of new housing stock. This inventory will include mid-income housing as well as luxury housing. However, this policy shift will not have any direct impact on pace of development.
Besides, whether it will boost low cost housing in Greater Mumbai and also help reduce realty prices?
Since any redevelopment includes rehousing of slum dwellers in organized housing stocks, it helps improve the standard of living of these dwellers. However, many of these dwellers are known to put their properties back in market either by way of renting or selling them. This does provide low cost housing solution indirectly. However all this will not have a direct impact on realty prices as the latent demand in the city outweighs the supply by manifold.
In addition to this, the government has also launched cluster development in Greater Mumbai. Will this also help revive the realty sector?
Cluster redevelopment schemes offers a reprieve for those cluttered and highly dense housing units that are in dire straits and need immediate attention for repairs or redevelopment. Clubbing of multiple smaller land parcels and old structures constructed thereupon, provides an opportunity of better master planning thereby providing a win-win situation to all stake holders. The current occupants are benefitted as they get new houses and better life-style, the developer gets to build houses that could be sold in the market thus catering to the housing needs of rest of the city and the city itself benefits due to better infrastructure like wider roads, more car-parking spaces, etc. So, it is given that a cluster development scheme will give much to the realty sector.
Despite slew of checks and balances in these polices do you fear these initiatives will be implemented without delays, red tape and corruption?
Past experience only highlights that most of such initiatives are delayed due to administrative log-jams and ulterior motives of few stake holders.
Will these policies further burden already decaying Mumbai's infrastructure?
The major cause of concern is lack of balanced and futuristic infrastructure development in the city. Most of such initiatives are takes with little or no care towards already crippled existing infrastructure of the city. Most of these developments will have a direct impact on the roads, water and power supply, drainage and other civic amenities. Cluster development does take care of few of these concerns but still falls short of a perfect solution.
How the proposed housing regulator will bring transparency and benefit both realty players & customers?
Realty sector has always been in a desperate need for a regulator. The proposed regulator will bring much relief to the consumers. The developers will be worried as any change brings unpleasant experience to begin with. However, many developers are happy that this regulator will help weed out the unscrupulous elements from within their fraternity who were bringing much of the ill-repute to the commune.