The recent Supreme Court (SC) ruling could balance the demand supply equation for Mumbai's property market, leading to considerable land supply and softening of high prices. SC ruled yesterday that a cessed building (constructed pre 1940) in Mumbai can be redeveloped under the provisions of section 33 (7) of Development Control Regulation (DCR) (as amended in 1999).
The ruling paves way for the redevelopment of 18,000 old (pre 1940) buildings in prime (South) Mumbai (including areas such as Girgaum, Grant Road, Bhuleshwar, Nagpada, Parel) as long as 70% of the tenants/landlord agree. Developers will need to provide at least 225 sq. ft. unit to each tenant free of cost, and in return will get additional FAR (50-70% of redeveloped area) to sell in the open market.
The existing two million tenants in these buildings (several are chawls) can get safer and better accommodation. However, inadequate civic infrastructure and low ground clearance could worsen quality of life & lead to unplanned development.
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