MAHADA - Economic Progress, Commercial Projects & Urban Development Ministry

The real estate sector got a crucial boost from the Maharashtra Government recently. Maharashtra Urban Development ministry has amended the Unified Development Control and Promotion Regulations (Unified DCPR) act that will now allow around 5 percent amenity space for construction in plots larger than 20,000 sq m.

Additionally, there will be an increased Floor Space Index (FSI) for Maharashtra Housing and Area Development Authority redevelopment projects and has granted additional FSI for commercial business districts (CBDs).

Shinde added that “The revised Unified DCPR will accelerate employment, promote economic progress and have a positive impact on the future of the industry,”. The real-estate sector is a significant economic engine tool and is considered the second-largest employment generation division after agriculture. Also, other industries like cement and steel are linked with the sector which will also get show improvement.

If we look at the numbers, in August 2020, the Thackeray government dramatically dropped the stamp duty on property sales from 5 percent to 2 percent. This further increased the demand and by the end of 2020, the sector witnessed the highest housing sales, which resumed the pace till March 2021 and again the second wave slowed it down.

The Real-estate sector is happy with the move

“The increased FSI for MHADA redevelopment will play a “positive role” in the redevelopment of MHADA colonies- said Dr. Niranjan Hiranandani, President, National Real Estate Development Council (NAREDCO). This is again one of the goals of UDCPR.

By allowing 5 FSI for commercial business districts, more commercial real estate development will further create extra working space and more jobs. It will also allow economies of scale to positively impact the viability of commercial projects,”- added Dr. Niranjan.

For any land that measures 20,000 sq m or more, 5% of the total area will have to be kept aside as amenity space. This move will lead to the construction of space for the project and the impact will be more on the overall viability of developing the layout. Municipal regulations for the development of playgrounds, schools, hospitals, fire stations, etc are already approved. Thus, the decision will favor and benefit developers and home buyers equally.

An amendment to bulk FSI norms introduced by the Maharashtra state government allowed for up to 30 percent residential uses in such CBD developments.