Realty industry fears delay in new launches as Maha scraps DP

Bs_logoImage
Press Trust of India Mumbai
Last Updated : Apr 21 2015 | 10:28 PM IST
Realty industry has raised concerns over shelving of the proposed Mumbai Development Plan 2034, saying this may further delay new launches which will ultimately result into a shortage of housing stock.
"Due to uncertainty, developers will be unable to launch new projects. I hope that the new plan is implemented at the earliest to avoid further adverse impact on Mumbai's real estate and its infrastructure," CBRE South Asia Chairman and Managing Director Anshuman Magazine said.
"Sellers don't sell land as they don't know the real value of their asset and the buyers too shy away from acquisition for the same reason. .... This whole confusion results in no new launch for almost about a year or two," said Knight Frank Executive Director, advisory, retail and hospitality, Gulam Zia.
Zia said the Development Plan didn't have major planning flaws as such, but it lacked on detailing and on-ground checks of satellite imagery.
The BJP-led Maharashtra government today scrapped the contentious Mumbai Development Plan (DP) 2015-2034 following stiff resistance from political parties, NGOs, heritage conservators and eminent personalities.
According to industry experts, the DP, which is now scrapped, lacked a balanced link with the existing infrastructure conditions of the city.
They felt the issue with the Plan was higher FSI resulting in high congestion, collection of FSI premium, and omissions or misrepresentations in the Plan.
"State government has appreciated the concerns of public, other stake-holders and acknowledged the mistakes in the proposed Plan (which was scrapped today). Although, the previous Plan suggested a good idea of variable FSI, it lacked a balanced link with the current infrastructure conditions of city," Olympeo Infrastructure chairman and managing director Prabhat Ranjan said.
Knight Frank has also suggested that instead of collecting premium for additional FSI, the developers could be made to hand over houses or to create civic amenities.

You’ve reached your limit of 5 free articles this month.
Subscribe now for unlimited access.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories

  • Over 30 subscriber-only stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Apr 21 2015 | 10:28 PM IST

1 out of 5 articles left

Subscribe for unlimited access
Subscribe Now