As per DCR 1991, it was mandatory for the developers of residential and commercial real estate to provide open spaces from 15 to 25 percent, depending upon the size of the plot. The meant that Floor Space Index (FSI) i.e. the development potential of a project was calculated as the gross area minus the area reserved as recreational open space.
Keeping in mind the future housing needs of the city, the Maharashtra government passed a regulation which will change the methodology to calculate the development potential. FSI will now be calculated on gross area – without the deduction of RG area. The provision for this has been made in the Development Control and Promotion Regulations (DCPR) 2034. However, the area that needs to be left aside for recreational opens space has been kept unaffected, at 15 to 25 percent.
Increase in FSI and inclusion of recreation ground in FSI calculation is a welcome change for the real estate industry. The authorities has made a thoughtful regulatory upgrade by optimizing the urban density of the maximum city thereby contributing to the housing for all mission. Furthermore, the move will help developers to get higher benefits through increased development potential of their land. If there are any height restriction or other constraints, the unused FSI can be sold as Transfer of Development Rights (TDR).
With the expansion of the project vertically, more flats would be constructed that would share the development cost and maintenance cost of the real estate project. Hence, minor rationalization of prices and reduction in the maintenance cost can be expected.Brihanmumbai Municipal Corporation (BMC) is developing transition policy to ensure proper transition and handle specific cases related to the transition.
DCPR 2034 is expected to be effective from 24th October 2018.