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Builders in Mumbai might soon be able to extract more construction space from plots of land. The Maharashtra government is planning to increase floor space index (FSI) from 1.33 to 2.5 in the city, according to sources. The Cabinet is yet to take a call on it. FSI refers to the ratio of a building’s total floor area to the size of the piece of land upon which it is built.
At present, in Mumbai, an FSI of 1.33 allows builders to construct structures with floor areas of 1,330 square meters on plots of 1,000 square meters. According to sources, the government is also looking to allow transferable development rights (TRD) in the island city. TDR means additional development rights obtained in lieu of socially relevant projects such as slum redvelopment and can be used in projects north of Mumbai.
Though the move is expected to increase the supply of housing in the city and have a cooling effect on the prices, developers said this time around, it is unlikely to have a significant impact.
“Even if FSI is increased, it will come at a cost of increased ready reckoner rates. I do not think we can reduce prices,” said a developer in Mumbai.
The Maharashtra government recently increased ready reckoner rates by upto 40 per cent in many parts of the city. Ready reckoner rates are rates which are used to calculate stamp duty and registration charges of a property. Any increase in that is expected to push up prices.
