Path-breaking housing policy

The Maharashtra government on Nov 1, 2006 unveiled its new draft housing policy for Mumbai. The government has granted a period till December 31, 2006 for suggestions and objections from the public. After which the policy is expected to be implemented in January, 2007.

According to the New Housing policy for Mumbai real estate;

# All buying and selling in the real estate sector take place on the basis of carpet area and not by built-p or super built-up area
# It is mandatory for all builders to include houses for low and middle-income groups in all their projects.
# The government has also decided to set up a housing regulatory commission to act as watchdog for the housing sector.
# The pricing of real estate in Mumbai will be monitored by the new housing regulatory commission. {The commission will be on the lines of the Telecom Regulatory Authority Commission (TRAI) and the Maharashtra Electricity Regulatory Commission.}
# With the aim of encouraging special township schemes outside the municipal area of Mumbai, the policy has proposed that floor space index (FSI) be raised from 0.5 to 1.0 in ‘urbanisable’ zones.
# The policy also mentions, as its priority areas, encouragement of foreign direct investment, construction of low-cost houses and of transit shelters and reconstruction of old and dilapidated buildings.
# Scrapping of urban land ceiling act
# Deregulate housing sector and encourage competitive and public private partnership
# Rationalisation of development control rules (DCR) and streamline building approval procedure.
# Promote rental housing.
# Creation of dedicated housing infrastructure fund.
# Construction of transit shelters in class I cities.
# Special attention on housing schemes in urbanised areas of the state.
# Third party audit of slum rehabilitation authority schemes to ensure greater transparency and accountability.

The revolutionary housing policy for Mumbai is intended to initiate the process of reforms and liberalisation so that affordable housing is created on a large scale.

Good News for Mumbai real estate!!
Read more
Reply
6 Replies
Sort by :Filter by :
  • Kudos!!!

    Kudos to the govt of Maharashtra!!!

    At least the common man in Mumbai can now be closer to their dream of owning a house.

    Ek ghar bane nyara.....
    sach ho sapna hamara.... :)
    CommentQuote
  • let the people decide....

    I couldn't stop myself from posting here friends....

    This policy is definitely a bold initiative by the govt. The builders in all these years have been extracting money from the buyers for all the super-built up and built-up area as and when we buy our house or apartment. But what we get as our own possesion is the carpet area.

    Take my instance...

    I bought a 1200 sq.ft apartment in Andheri last year for Rs.4900/sq.ft.
    But what I got to live is actually 750sq.ft i.e. the carpet area.

    I paid approximately 59 lacs for 1200sq.ft, but by the new housing policy; which would only include the carpet area, I would have paid only for 750 sqft i.e 37 lacs approx.

    I hope the calculation says it all.....
    Its now for the people to decide :)
    CommentQuote
  • The new housing policy is no doubt a good step and highly appreciable by the people of Mumbai.. according to a stat, more than 80% of Mumbai’s middle class population can not afford to buy a house.

    I m pretty much optimistic about the move but do u people believe tht this policy is here to stay for a long time. I guess.. NO!! Builder lobby has already started raising their eyebrows on this move.

    I had a chat with a builder who is also a close friend of mine and he said that the price per square foot would increase if the user pays only for the carpet area...
    CommentQuote
  • Wait and Watch..

    Its not time yet to rejoice..
    The new housing policy seems pathbreaking, but it needs to be taken with a big pinch of salt
    If the past records of all the state goverment is anything to go by, it will be ages before things are implemented in the right spirit and get the desired results
    I dont intend to sound pessimistic, but with my 12 year experience in the industry, i have seen closely the way this industry functions.
    I spoke to few of the big wigs in the industry and eveyone had a cautious wait and watch attitude
    Read the article in todays Sunday Mid-Day
    http://ww3.mid-day.com/news/city/2006/november/146091.htm

    It would be interesting to watch the government implement all the points raised in their New Housing Policy at the earliest.

    Ram
    CommentQuote
  • will the buyer's benefit?

    Yes, you are right to some extent. But the builder's next move if the policy is implemented has been anticipated and is the latest storm in the cup now...

    THE new draft housing policy unveiled by the State government on Wednesday may have made buying a house easier, but it comes with no monetary difference for the buyer. For, to compensate for the revenue loss due to ban on including built-up or super built-up area, the builders will increase the rate per square foot of the carpet area. "To adjust the revenue loss, the builder will simply increase the rate per square foot," Lalit Kumar Jain, convener, Confederation of Real Estate Developers Association of India (CREDAI) and Kumar Builders chairman, said.

    The reason: The built-up or super built-up area adds as much as 25-35 per cent of the total area of a flat. So, in actual terms if a person buys a 1,000 sq ft flat, the carpet area is a mere 650-750 sq ft, while the person pays for the entire 1,000 sq ft. To put it in monetary terms, if a person buys a 100 sq ft flat at the rate of Rs 80 per sq ft, the total cost of the flat works out to Rs 8,000. However, the customer gets only 80 sq ft carpet area with the rest going for built-up and super built-up areas. But the draft policy has made it clear that the builders can charge only for the carpet area. Hence, if a customer buys a flat with 80 sq ft carpet area at Rs 80 per sq ft, the customer has to pay only Rs 6,400 and not Rs 8,000 for the flat.

    This had led to speculation in the market that the house would cost less. But the reality is that instead of Rs 80 per sq ft, the builders will now raise this to Rs 100 per sq ft, thereby having no change in the price for the customer. But if the customer wants to go for a 100 sq ft carpet area flat, the customer will have to shell out Rs 10,000. However, a section of the builders said they had been following a carpet area-based pricing strategy for the past few years.

    Source: Pune Newsline
    CommentQuote
  • vikas

    i totally agree with you. ultimately the situation in case of pricing would be the same. out of pocket cost would be same. there is no need to be happy in terms of pricing of housing policy.
    CommentQuote