India Real Estate Monitor

The increase in the floor space index could just be the shot in the arm for Mumbai’s redevelopment story. A recent amendment to Section 33(7) of the Development Control Regulations, 1991, has raised FSI, the ratio between the allowed built-up area and plot area available, for redevelopment of cessed buildings from 2.5 to 3. An FSI of 1, for instance, on a plot of hundred square meters implies that one can have a built-up area of hundred square meters.
This comes at a time when redevelopment could revive the sector. Quality land has come at a premium in the commercial capital of India that has resulted in prices often getting to unaffordable levels.