The implementation of the new Development Control (DC) rules has brought the real estate development in the city to a grinding halt. The Brihanmumbai Municipal Corporation (BMC) received only two proposals in the last two months compared to 15 a day during peak time. The civic body has not cleared either of the proposals.
“Only two developers dared to submit their proposals in two months. The poor response will have a long cascading effect on the city’s development and real estate prices. The market moves on the calculation of demand and supply. If the supply dries up, prices will skyrocket once again,” an industry expert told DNA.
“To control realty prices and make homes affordable, the government should ensure maximum supply of housing units. Instead of clearing proposals, local authorities are blocking them,” said Shailesh Puranik, managing director, Puranik Builder Pvt Ltd.
Maharashtra Chamber of Housing Industry president Paras Gundecha said there is confusion about the new DC rules. “The government may have amended the DC rules, but the BMC has not yet clarified what exactly it wants. In a mega city like Mumbai, development needs to take place rapidly to match the demand of the growing urban population,” he said.
“No one is interested in the city’s development and in creating more housing stock. Developers are not launching new residential projects. If things continue like this, very soon, we will be jobless. At present, whatever residential projects are on, are old ones. The developers have not undertaken new projects,” said Gundecha.
Chief engineer of the BMC’s development planning department Sudhir Ghate confirmed that the civic body has not cleared any proposal since the implementation of the new DC rules. “It will take time to understand the new rules. People were busy with the civic polls. The proposals will start flowing now,” he said.
Civic engineers working with the building proposal department and developmental planning sections are also ignorant about the new DC rules. “We have yet to understand the amended rules and regulations. With each passing day, there is a new circular issued with clarifications and advisory notes. The cluster development and redevelopment rules clash with the new DC rules. Developers are inquiring about the DC rules, but have not yet started submitting their proposals. We are idle as of now and are only answering right to information queries,” a civic engineer said on condition of anonymity.
“We appreciate that the government’s efforts in framing stringent laws to prevent the misuse of floor space index. However, the laws should not be so stringent and complicated that architects and developers shy away from undertaking new projects. There is no clarity on any new rules,” said a prominent architect.
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