Maharashtra set to announce new housing policy on Sept 2

Realty experts bat for upgradation of physical infrastructure to suit growth

The BJP-led government in Maharashtra is set to announce a new housing policy on September 2. Some of the key proposals include part-utilisation of salt pan land (about 650 acre between Ghatkopar and Mumbai in North East Mumbai) for the construction of 1,50,000 houses, redevelopment of old and dilapidated buildings in the island city of Mumbai on the lines of those being redeveloped in suburbs, redevelopment of BDD chawls spread of 90 acre in Central Mumbai and reconstruction of transit camps. The government plans to provide extra FSI and other physical and financial incentives in an attempt to achieve its goal of construction of 1.1 million houses in Greater Mumbai.

The release of new housing policy assumes significance especially when the election to the BJP-Shiv Sena controlled BrihanMumbai Municipal Corporation (BMC) is slated for early 2017.

The state housing minister Prakash Mehta told Business Standard,'' I have held a detailed discussion with the Shiv Sena president Uddhav Thackeray, who has made some key suggestions. The focus is on affordable housing among other things.''

JLL India COO & Business & International Director Ramesh Nair said for better or for worse, the Government cannot influence the prices that developers quote. The Government wants affordable housing, while most developers currently prefer to build mid-range and luxury housing. ''One way that could influence a greater focus on affordable housing would be creating a Housing REIT wherein the REIT can then buy such projects. However, the low-yields in the residential segment may make such a solution unviable. Another possibility is the creation of Special Residential Zones specifically meant for affordable housing, where special incentives and breaks are offered,'' he noted.

Knight Frank executive director Gulam Zia observed that open ended policies like TDR loading, slum redevelopment, cessed building redevelopment, IT-park policy, change of use of industrial lands, textile mill redevelopment, car-parking policy gave enough to read between the lines and have done more damage to the city than the intended value add. ''It's time we keep policies on a back burner and focus of development of physical infrastructure to last for the next century. Only when we create the infrastructure to suit city's growth requirements, affordable and sizeable land masses will be available in abundance. This will ensure sufficient stock of affordable housing for the working class. It can have a dominos effect on the rest of the city's real estate, unleashing a price reduction across the board,'' he viewed.

Cushman & Wakefield managing director (Mumbai) Gautam Saraf hoped that the new housing policy should take into account interest of various stakeholders that would ensure an efficient and sustainable housing framework. The policy should put slum rehabilitation in focus and ensure that the same is done in a timely manner, with minimum delays.

''Our endeavour is to aim for a slum- free Mumbai. As the government lays emphasis on affordable housing, the planning for the same should be done in a manner such that key factors including access to mass transportation services, connectivity to locations offering employment are taken care of,'' Saraf said