Mumbai’s new DCPR (Development Control and Promotion Regulation) 2034 blueprint has been implemented after revision. This will boost the real estate market in Mumbai since it will lower construction costs by 6% as per reports. Premium FSI and fungible area costs have been lowered by 10% in case of residential developments by the Maharashtra Government. Land owners previously had to fork out 60% of the ASR (annual schedule of rates) of the land to several government agencies, they will now pay 50%. The project will be lowered by at least 5-6% as a result. Real estate developers will be attracted towards redevelopment projects since higher transfer of development rights (TDR) will be available. However, developers have to pass on these benefits to customers for the market to really thrive. Additionally, permitted FSI has been tied to road width and hence the DCPR 2034 will lower congestion in Mumbai since it will make sure that taller buildings can only be built in case road width can support the same. This plan will transform the Mumbai real estate market according to several experts. With a major portion of land being allocated for affordable housing projects, there will be higher activity and projects in this category which will ultimately boost the Mumbai realty market. The proposed minimum benchmark of 300 sq. ft. for affordable housing developments will be a major boost in terms of ensuring more space for residents as per experts. Realty developers and investors will no longer be sitting on the fence with regard to developing real estate projects. The FSI curb has been lifted in Mumbai by this new plan and commercial realty ventures like bio-tech parks, hotels, educational and medical hubs and financial technology hotspots will also benefit due to higher FSI. There are no compromises with regard to green cover, open spaces in the city and no-development zones in the blueprint.
Lower costs of construction and reduced congestion to be ensured by Mumbai DCPR
