Shortage of open land in MumbaiBy Dr Suvrokamal Dutta

No doubt, the metropolitan city of Mumbai has gone through a big real estate boom with an ever-increasing demand for all sorts of properties. However, there is a shortage of adequate supply and constraints on the availability of open land within the city’s limits.

On the other side of the coin, there are wide array of ageing buildings that are dilapidated and the problem goes more acute with each passing year. “Though they are in dire need of extensive repairs, societies do not have the resources and necessary funds required to carry them out,” pointed out real estate expert Anil Motwani.

When one takes into perspective the goal of redevelopment of existing colonies with new structures, the Government has floated number of schemes for carrying out redevelopment schemes. When The India Street checked the official data, it come into the notice that in 1999 modifications were introduced to the Development Control Regulations, which in general allow redeveloped properties to rise above the 45 meter limit. The pivotal factor here is that this modification was needed as additional FSI, which was provided to builders as an incentive for redevelopment, could only be accommodated by going higher. If experts are to be believed, in case of redevelopment of old buildings, builders approach societies that either have some open plot of land or are interested to demolish the old structures to reconstruct new buildings. The types of redevelopments that are happening are on private ownership co-operative societies and tenanted properties. It is worthwhile remembering that residents of multiple buildings can also get together for redevelopment. “With a much larger area for redevelopment, it provides for better facilities including wider roads and playgrounds. This approach can clearly lead to an improvement in living conditions for residents of these old colonies,” pointed out noted journalist Vedrakish Pandit. The only downward side with this procedure is that with old buildings being demolished and towers constructed in their place, additional pressure is on the infrastructure. For example, in suburban locations from Bandra to Andheri, residents of old buildings are being paid off to move their homes hence creating room for more development through use of TDR. With opportunities to grab redevelopment projects the effect on the valuation of properties has gone haywire in the suburbs. In other word, what is worth Rs 8000 per sq ft in case of a redevelopment situation sells at Rs 16,000 to 20,000. Of course, the price offered depends on the final type of use of property.