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Higher FSI in Mumbai! Is the proposal Jerry-Built?

The need was felt to bolster tepid growth in realty’s residential sales followed by affordability issues. As a result, during the first week of May 2016, the Shiv Sena and BJP promoted MCGM (Municipal Corporation of Greater Mumbai) introduced a revised draft development plan suggesting a hike in FSI (Floor Space Index) i.e. an extra built up areas from 1.33 to 2 which may be extended to 5 for special cases.

It also proposed higher FSI to the redevelopment of buildings which are built for more than 30 years. A little bird told that fire ducts, electricity ducts and garbage chutes would be excluded from FSI calculations.

The move by the government may see little or no positive move in the near term amid rising inventory and recently hiked prices, but would definitely give a push to the long-term goal of Modi’s Housing for all 2020.

However, some experts see haphazard development in the already overloaded city and would benefit the developers more than the ultimate consumers. Moreover, if the prices do not fall in accordance with the rising space, the inventory would increase more. Come what may, the news has helped realty stocks surge in double digits in the last couple of sessions.