CM nod for new Parking lots in Mumbai

The pace of real estate growth in Mumbai city is beginning to tell on the market. One of the main issues is the reducing number of avail abilities needed for modern living- primary among them being the lack of parking space. However, with the recent approval of the state government for additional parking lots, Mumbaikars may take a breath of relief in regard to the issues related to stationing their vehicle.

According to a recent survey, there are almost 20 lakh vehicles plying on the roads of Mumbai. Such vehicles are left to station in less than 150 legal lots managed by Municipal Corporation, Government agencies, MMRDA, Railways and MSRDC. In what is seen as a boon for the Mumbai city, the Maharashtra State government has sanctioned three more public parking lots to be constructed under the new parking FSI policy for more than 1300 vehicles. Under this scheme, around 35 projects have been sanctioned.

Revised Policy

According to the revised policy of the state government under the Development Control Regulation 33(24), a developer is allowed an FSI of up to four in exchange for building of parking lots.

The revised policy confirms that parking lot floors will be limited to four FSI. The minimum area for the plot needed to amend the policy has elevated to 1000 sq. mts from 700 sq. mts. in the island city and in the suburbs it has increased to 2000 sq. mts.

Difference with the old policy

The old policy states that 211467 sq. mts have been assigned for four-wheelers and 3195 sq. mts for two-wheelers. The figures may look big at first take, however, an in-depth study shows that the space is inadequate to accommodate the parking requirements of the growing automated population.

BMC’s professionals further claim that a car or jeep needs a slot of 13.75 sq. mts while a two-wheeler needs 2.88 sq. mts,for parking. With the implementation of the revised policy, the leftover vehicles, around 1200 two-wheelers and 15400 four-wheelers in the city, will be offered adequate space for parking.

Ideal space for parking plots

There are certain factors which make a land ideal for parking plots. Such factors include:

• Proximity to all the residential locations

• Adjacent to high-end localities

• Connectivity to land through well-maintained and proper roads

The land price might be very high for such areas. Hence, additional FSI is granted for these locations.

Role of FSI

In accordance with the original policy, the developers were offered an FSI of 4 in exchange for building of the parking lots. Experts suggest that the old policy was builder-driven and required modification.

To resolve the parking space issue, the government can offer additional FSI by constructing multi-level parking. Incentives, like additional FSI along with a revision in the present parking fees must be proposed to private developers to trigger their interest in MLCP projects.

Impact of the revised policy on Mumbai real estate

The new lots sanctioned by the government have been built in Ghatkopar, Altamount and Mulund(LBS Marg). With the slowing down of the Mumbai real estate, developers and investors are making proper calculations before investing in the market. One of the best strategies being availed by real estate investors of Mumbai at present is-Parking Lot Arbitrage.

Due to the growth in population, the average per capita of land has seen a major setback. To add to it, with urbanization and a surge in disposable income, consumption of number of four-wheelers and two-wheelers in the city have gone up incessantly. Key real estate companies are capitalizing the present condition by building huge parking lots and selling the slots at comparatively higher prices.

Investors who require parking lots for their specific purpose have experienced a high yield on their investment due to permanent parking plot investments. This opportunistic style of investing funds has become the recent trend among the developers in Mumbai.

Till now BMC has received around 70 proposals for public parking lots, out of which only 32 have been sanctioned. 76% of multi-level car parking space have been granted at G-south (Lower Parel) and G-north (Dadar) ward of Mumbai. Out of the suggested proposals for constructing parking space for more than 25000 vehicles in Mumbai, 19000 has been allocated to G-north (Dadar) and G-south (Lower Parel) ward.

With demand for parking lots in the city being active at present, sanctioning of additional space by the government is surely going to be a hit among the people, especially with the automated citizens.