Property rates in suburbs may rise as Maharashtra hikes additional FSI

Q: This move will likely to see a rise in realty rates in the suburbs of Maharashtra.

Roshni Pawal, Mumbai

15th December 2015

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Replies (2)

Right Sasidharan,
The state hopes to mop up around Rs.3500 crore to Rs.4000 crore with the move and the premium received will be shared equally between the state government and the civic body.

Sandeep Mhatre, Mumbai

15th December 2015

Comment

But developers are saying that additional FSI will increase in property rates in the suburbs, as the additional FSI works out in the range of Rs.4000 to Rs.12000/sq-ft. And as a result this cost will get passed on to the buyers. While the realty markets are already slow and this further increase in rates is likely to as a challenge.

jitu jayswal,

15th December 2015

On the other hand, additional FSI will also lead to increase in the cost of Transfer of Development Rights certificate. The city suburbs have a base FSI of 1 and are allowed to use TDR of 1, which can be brought from the market.

Sandeep Mhatre, Mumbai

15th December 2015

@Sandeep,
There should not be any additional FSI. Because, this will increase project costs and developer will have to force to increase the selling rates.

In March, they had already proposed to increase the FSI for suburbs and a notice was issued to hike FSI by 0.60. However, after going through suggestions and objections from the public, the FSI was hiked by 0.50. Now, once again.....

jitu jayswal,

15th December 2015

Now, the additional FSI will come at a cost, with the state increasing the premium on it to 60% of the current ready reckoner rates. The state government issued the final notification increasing additional development rights and premium charged with an aim to wrap up more revenue for a cash-strapped treasury.

Sashidharan,

15th December 2015

Comment

I heard this news and it will be a pressure on both builders as well as buyers. The state's urban development department modified regulation 32 of the Development Control Rules on December 4 to increase additional FSI for the city's suburbs from 0.33 to 0.50.

Bulbul Verma,

15th December 2015