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Mumbai Leads in New Housing Policy


Mumbai Leads in New Housing Policy

Last updated: June 1 2012
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  • Mumbai Leads in New Housing Policy

    If things are followed in the right spirit as the new housing policy states, we can see some active action in the realty sector.
    Here is what the Economic Times have to say today :
    Any comments ?

    Prabhakar Sinha, November 06, 2006
    The Economic Times

    Maharashtra government has taken the initiative. In the Draft Housing Policy, the state government has decided to set up a housing regulatory commission to act as a regulator for the housing sector. The much-needed move would prove a kind of relief to the buyers and investors.

    The draft housing policy has proposed to make it compulsory for the builders to sell apartments on the basis of carpet area and not on built up area or super area. If the proposal is accepted , this would make the real estate market more transparent. The carpet area is that area inside the apartment which a buyer will use. In built up area, the common areas like corridor, stair-case , lift and other area is also included on proportionate basis that a the apartment owner can use. In the super area, the other common areas like grounds are also included in the proportionate basis.

    Normally, the built up area is 25 to 40% more than the carpet area. In fact, finance companies like HDFC Ltd have already said that they would give loan at lower interest rates if a builder fixes price of an apartment on the basis of carpet area.

    In order to make available houses to weaker section at affordable price, the draft regulation has proposed to allow higher floor space index (FSA) to the builders who build houses for lower income group (LIG) and Middle income group (MIG). In certain cases, the draft proposal has proposed to make it mandatory for the builder to build houses for weaker sections. However, the draft policy is short of making any concrete proposal for the developers and builders for building houses for the weaker section.

    The draft policy has also proposed for the slum dwellers to form cooperatives and to tie up with Non government organisations (NGOs) for funds to reconstruct new houses in the area.

    The draft policy will remain open to public for giving suggestions till December 31, 2006. Maharstra chief minister Vilasrao Deshmukh said that the new policy would be implemented from January 2007.

    The policy is likely to give impetus to the real estate sector in the state. Need for similar policy is felt in other states also. Particularly in Delhi, where real estate has emerged as one of the most important savings instrument, such regulation along with a regulator is required . All the investment markets, like equity and debt markets, mutual funds and banks, are regulated by their respective regulators. But, in the case of real estate market, there is no specific regulator where harassed investors or buyers can approach for resolutions.
  • #2


    Re : Mumbai Leads in New Housing Policy

    Earmarking areas for social groups in new layouts/colonies/group housingh schemes

    This is a slight deviation from the Housaing policy forum...
    I am given to understand taht teh Central Government is making it mandatory for all States to enact/modify teh existiung laws/rules w.r.t. developers undertaking new colonies/layout developments/group houisng schemes wherein a certain percentage of the dwelling units/flats are required to be set apart for social groups like EWS and LIG in the new colonies/group housing schems/townships and dispose of only to such segments in such sites.
    Have any of the States enacted such rules? How can the develoepr acheive such a social mix where teh land values are exhorbitant and affordability question comes not only in terms of financial but also in terms of social and cultural values, etc. Also would not these provisions be challengable in court of law legally ?



    • #3


      Re : Mumbai Leads in New Housing Policy

      Agreed with Vasista
      Last edited June 30 2008, 04:11 PM.


      • #4


        Re : Mumbai Leads in New Housing Policy

        It may surprise you to learn that most people in receipt of Housing Benefit do so unwillingly. They have been forced in to the situation by government and business cutbacks


        Have any questions or thoughts about this?