New CRZ rules to enhance realty sector in Mumbai

The implementation of Coastal Regulation Zone (CRZ) Notification, 2018 will boost the realty sector which is currently entangled in procedural curbs, developers have hinted. The Centre's move to bring out new norms will lead to the rise in the supply of homes, but may also increase the woes of builders who are saddled with a burgeoning inventory, they said. The new rules could help builders get floor space index (FSI) up to 3 for the island city of Mumbai, up from present 1.33 depending on road width. For suburbs, it could go up from 1 to 2.7. The Notification permit real estate activities up to 50m of the high tide line and temporary structures like shacks, change rooms, toilet blocks at only 10 m from the tide line. Rustomjee Group CMD Boman R Irani said residents of old buildings will be happy that the redevelopment which was stuck up due to CRZ can be taken up. "It is a much-needed change for Mumbai. However subject to reading the fineprint, we will know the actual impact for the city," he told DNA. Founder and MD of Hiranandani Group, NiranjanHiranandani, said, “The Indian Government approved the Coastal Regulation Zone (CRZ) Notification-2018. This is a positive move, and will enable promotion of economic growth in the coastal areas. The notification balances ecological issues with the need to support creation of infrastructure along the coastline. Globally, we have seen coastal cities having tourism related development close ro the shoreline, the notification creates hope that India too will have coastal development in terms of infrastructure as also tourism-related growth, which would enhance economic growth while respecting principles of conservation.” AnujPuri, chairman of ANAROCK Property Consultants, said there will be an infusion of affordable housing and it will also boost tourism. On the flipside, it will make the coastline vulnerable to environmental disasters. On the other hand, leading architect Yomesh Rao observed that the CRZ notification will release a lot of housing stock in sea fronting localities leading to excess supply. This will result in a reduction in prices at a time when there is already an unsold housing stock. ''Till now the developer mantra was maximisation of FSI and built up area (BUA) but that is set to change. The future mantra of redevelopment or development will be optimization of FSI and BUA of projects to make profits,'' said Rao.