Mumbai builders must keep 20% area for affordable housing
Nov 15, 2013
Source : The Times of India

 

MUMBAI: Builders developing a housing project on a 4,000 sq m (acre) plot must reserve 20% of the area for affordable housing, according to a state government notification issued last week. It will not be applicable to schemes where commencement certificates were issued on or before November 8, 2013.

The developer will receive 20% extra floor space index (FSI) as an incentive for the 20% reservation for public housing.

It will benefit low income groups (LIG) and economically weaker sections (EWS), who will be allotted the 323-538 sq ft tenements through a lottery by Mhada, the state housing authority. The scheme will create more housing stock at a time when Mhada does not have much land with it here.

The notification said that when the developer intimates Mhada about granting of an occupation certificate (OC) by the planning or civic body to his newly built apartments, Mhada has to decide within six months if it will purchase the 20% tenements or allot them to those selected through a lottery system. In case of plot, if Mhada declines to purchase it within six months, he can sell them in the open market, for which additional FSI will not be permissible.

In case of tenements, the developer or land owner has to sell plots of flats to Mhada or allottees selected by Mhada at construction rates decided by the inspector-general of registration, Pune, under annual statement of rates in the year of the scheme’s approval. “The developer has to first get an OC for affordable housing, then only will he get an OC for the other 80% housing, which he can sell in the open market at market rates,” a senior urban development official explained.

The developer has been permitted to utilize one-fourth of the 20% FSI earmarked for affordable housing towards construction of service quarters on the same plot but in a separate block, which has to be sold by the developer as service quarters in the open market under the scheme.

“There will be no obligation on schemes to build such housing wherein more than 20% of the area including FSI has to be utilized towards construction of tenements for EWS, LIG or middle-income groups (MIG),” the notification stated.

 

Latest Realty News

Do the homework on real estate funds
Nov 15, 2013
MUMBAI: If you have more than a few lakhs waiting to be parked somewhere, investing in real estate must have crossed your horizon. Real estate investments, a high-end one and typically meant for wealthy individuals, have been delivering internal rates of returns of around 18-25 per cent per annum in the past few years.
BMC weighs options to rehabilitate Campa Cola residents
Nov 15, 2013
MUMBAI: The Brihanmumbai Municipal Corporation (BMC) is examining the option of taking back a part of the plot in the Campa Cola compound from a builder, who had acquired third-party rights without the civic body’s permission, for the FSI required to accommodate the occupants of the illegal flats. BMC commissioner Sitaram Kunte will present the option to the chief minister on November 15.
Mumbai Residential Property – Striking A Balance
Nov 15, 2013
MUMBAI: Mumbai has a high residential inventory of 67,000 units, equal to sales of 34 months. While the underlying demand is strong, it is not being converted into transactions due to the high property prices. From a developer’s point of view, low absorption is a source of worry; however, due to high costs of land acquisition, raw material, labour, finance and new costs such as fungible FSI, lowering prices beyond a point seems difficult. Is there a way to end this stalemate?
Buying your dream house? Here's a checklist to bear in mind
Nov 15, 2013
MUMBAI: The ongoing Campa Cola compound stand-off in Mumbai has clearly unnerved many prospective home buyers.
Home and auto loans get dearer
Nov 14, 2013
MUMBAI: State Bank of India (SBI), the country's largest lender, has decided to increase its base rate or minimum lending rate by 20 basis points (bps) from Thursday, to 10 per cent from the present 9.8 per cent.
Delay in infra projects can hit property prices in their region
Nov 14, 2013
MUMBAI: In a report released two years ago, ratings agency Standard & Poor's said, "Infrastructure development in the country is being hit hard due to the slow pace of reforms and limited long-term funding options and this trend could deter economic growth of the country."
Apex court stay on demolition gives temporary relief
Nov 14, 2013
MUMBAI: Dozens of packed boxes scattered around and two corners full of toys of their three-year old grand-daughter Sanvi left untouched arewhat greets you when you first enter the home of Dr Pramod D Potdar on the 8th floor of the midtown building in the Campa Cola building complex.
Navi Mumbai airport deal brings Rs 10,000cr land in market
Nov 13, 2013
MUMBAI: The "best" compensation deal ever in the country that was struck by the state government with project-affected persons (PAPs) on Monday to clear the way for the proposed Navi Mumbai airport also brings land worth over Rs 10,000 crore into the real-estate market for development.
Demolition in Mumbai will weaken legal floors, residents fear
Nov 13, 2013
MUMBAI: Campa Cola residents whose flats have been declared illegal are understandably under pressure, but legal residents whose homes are not up for demolition are enveloped by insecurity as well. Two reports by structural engineers indicate that the remaining structure will not be fit for habitation once the illegal portions are demolished. The legal residents also wonder how the BMC will continue to provide water and electricity while cutting off utilities for the illegal flats. After all, fl
Rental values largely stable in Mumbai in Q3 2013, says CBRE
Nov 12, 2013
MUMBAI: Mumbai witnessed sluggish commercial leasing activity during the third quarter of 2013. The micro markets of Lower Parel, Thane and Navi Mumbai witnessed high traction and were the preferred regions for office space leasing. Rental values in Mumbai remained largely stable with marginal dip in the central business district (CBD) and alternative business district (ABD) locations, according to the findings of CBRE’s latest report, India Office Market View Q3 2013.

Latest Realty News Of State

Realty Talk's