DCPR 2034 - Changing Landscape of Mumbai Real Estate

DCPR 2034 has far-reaching implication on the Mumbai's growth.The new policy has cleared a lot of ambiguity related to construction and redevelopment activities.This progressive step by the government is an indication of promising growth of real estate sector which is expected to contribute 11% of the GDP of India by 2020.

1. Changing Landscape of Mumbai Real Estate - Development Control and Promotion Regulation (DCPR) 2034 Ve Advisory | Debt Syndication | Real Estate Funding | Construction Finance

2. The much awaited Development Plan 2034 of Mumbai was unveiled by the government in May 2018 and was put for public suggestion. The final version of DCPR 2034 came into effect from 1st September, 2018 some set of provisions were to be notified on 13th November, 2018. DCPR 2034 would govern and regulate all the constructions in the city. The objective of enforcement of new DCPR is to address the problems of redevelopment of Slums, Cessed buildings, Maharashtra Housing and Development Authority (MHADA), private housing societies as well as promote and guide the new development of buildings on private land . Transition policy for the same came in three different phases to provide guidelines for calculation of FSI as per new DCPR – TL-1 issued on 31 st Oct,2018 TL-2 Issued on 4 th Dec,2018 TL-3 issued on 27 th Feb,2019 Ve Advisory | Debt Syndication | Real Estate Funding | Construction Finance Introduction:

3. Definition: Floor Space Index or FSI means the ratio of the total covered area of all floor to the total area of the gross plot - Floor Space Index (FSI) = Total covered area of all floors Gross Plot Area Following areas will not be considered as covered area for computation of FSI: Terraces created due to set back Refuge floor area Service floor Fire check floor Roof over staircase and lift machine room Porch, Canopy, Entrance area at ground/podium floor Arcade adjacent to the street Ve Advisory | Debt Syndication | Real Estate Funding | Construction Finance Floor Space Index (FSI) : Floor Space Index (FSI) :

4. Electrical Duct / fire duct of clear width upto 0.45 m, if not abutting to any habitable room. Area for facility for in situ treatment of wet waste. Area of Letter boxes on the ground floor/stilt floor/over podium or any other convenient location for every unit of residential, commercial and industrial occupancy in each wing. Area of meter rooms having area of 10 sq. m. per 50 tenements at basement / ground / stilt / podium. Refuse chute / Garbage shaft for residential buildings. Elevation feature or dome like structure above water tank/lift machine room/staircase room – Up to 2 m for building with height beyond 32 m & up to 70 m, Up to 6 m for the building height beyond 70 m and up to 120 m and Up to 9 m for building with height beyond 120 m, with 60% voids in surface area Newly added Free of FSI Component in DCR 2034 – Ve Advisory | Debt Syndication | Real Estate Funding | Construction Finance Newly added Free of FSI Component :

5. For Island City (Residential) Road Width Basic FSI Add FSI on payment of premium Admissible TDR Permissible FSI Add Fungible FSI @ Total FSI (a) (b) ( c) d = a + b +c e Upto 9m 1.33 - - 1.33 35% 1.80 9m – 12m 1.33 0.50 0.17 2.00 35% 2.70 12m – 18m 1.33 0.62 0.45 2.40 35% 3.24 18m – 27m 1.33 0.73 0.64 2.70 35% 3.65 > 27m 1.33 0.84 0.83 3.00 35% 4.05 Ve Advisory | Debt Syndication | Real Estate Funding | Construction Finance Calculation of FSI:

6. Calculation of FSI under DCPR 2034 For Suburbs (Residential) Road Width Basic FSI Add FSI on payment of premium Admissible TDR Permissible FSI Add Fungible FSI @ Total FSI (a) (b) ( c) d = a + b +c e Upto 9m 1.00 - - 1.00 35% 1.35 9m – 12m 1.00 0.50 0.50 2.00 35% 2.70 12m – 18m 1.00 0.50 0.70 2.20 35% 2.97 18m – 27m 1.00 0.50 0.90 2.40 35% 3.24 > 27m 1.00 0.50 1.00 2.50 35% 3.375 Ve Advisory | Debt Syndication | Real Estate Funding | Construction Finance Calculation of FSI:

7. Calculation of FSI under DCPR 2034 For Island City and Suburbs ( Commercial ) Road Width Total FSI > 12m 4.05 > 18m 5.40 > 27m 6.75 Ve Advisory | Debt Syndication | Real Estate Funding | Construction Finance Calculation of FSI:

8. Height of Building w.r.t. Road Width Building Type Height of Building Minimum road width required (In sqm ) Assembly Building Upto 32 m 12 Assembly Building > 32 m 18 High Rise Above 32 m up to 70 m 9 High Rise Above 70 m up to 120 m 12 High Rise > 120 m 18 Ve Advisory | Debt Syndication | Real Estate Funding | Construction Finance Height of Building w.r.t. Road Width:

9. Ve Advisory | Debt Syndication | Real Estate Funding | Construction Finance The FSI shall be 3 on the gross plot area (exclusive of the Fungible Compensatory Area ). FSI permitted may exceed up to 4.00 FSI in case of plots, having area of 4000 sq. m or above having road width of 18.00 m or more. A major boost to redevelop MHADA colonies in the city, has finally surfaced. The consent of residents which was earlier 70 per cent, has been brought down to 51 per cent. This is a big change as less percentage of tenants' consent means faster redevelopment and restoration . The second big change is that for colonies that are above 4,000 square metre - Area Prior to DCPR 2034 As per DCPR 2034 > 4000 sqm FSI of 3 by paying a premium Plus 1 FSI which was meant for housing stock that was completely handed over to MHADA FSI of 3 by paying a premium Plus 1 FSI meant for housing stock the developer will hand over two third housing stock to MHADA and remaining one third to the existing housing societies which means larger homes for tenants and in lieu of which the authority expects tenants will agree faster for redevelopment. R egulation 33 (5) – Redevelopment of housing schemes of MHADA

10. In the case of redevelopment of cessed building existing prior to 30/09/1969 undertaken by same or different landlords or Co-operative societies of landlords and Co-operative Housing Societies (existing or proposed ) of existing tenants and/or occupiers, the total FSI shall be 3.00 of the gross plot area or the FSI required for rehabilitation of existing occupiers plus 50% incentive FSI whichever is more . In case of composite redevelopment undertaken by same or different landlord or Co-op Soc of landlord and Co-op Soc (existing or proposed) of existing tenants and/or occupiers landlord/occupiers jointly of 2 or more plots but not more than 5 plots with cessed buildings existing prior to 30/09/1969, total FSI shall be 3 of the gross plot area or FSI required for rehabilitation of existing occupiers plus 60% incentive FSI whichever is more. (The occupier is eligible for 5% additional rehab carpet area) If the number of plots jointly undertaken for re-development is 6 or more with the cessed buildings existing prior to 1969, total FSI shall be 3 of the gross plot area or FSI required for rehabilitation of existing occupiers plus 70 % incentive FSI whichever is more. (The occupier is eligible for 10% additional rehab carpet area) Ve Advisory | Debt Syndication | Real Estate Funding | Construction Finance Regulation 33 (7) – Redevelopment of Cessed building in the Island City

11. In case of redevelopment of existing residential housing societies proposed by Housing Societies/ Landlords or through their proponents where existing members are proposed to be re-accommodated on the same plot, incentive additional BUA to the extent of 15% of existing BUA or 10 sqm per tenement whichever is more shall be permissible without premium. If staircase, lift and lobby areas are claimed free of FSI by charging premium as per prevailing regulation then such areas to that extent will be granted free of FSI without charging premium. If staircase, lift & lift lobby areas are counted in FSI in earlier development, then incentive additional FSI shall also be given on such area & such areas may be availed free of FSI by charging premium. This Regulation shall be applicable only when existing members of the societies are proposed to be re-accommodated. This regulation will be applicable for redevelopment of existing authorized buildings which are of 30 years of age or more. Ve Advisory | Debt Syndication | Real Estate Funding | Construction Finance Regulation 33 (7) B – Additional FSI for Redevelopment of Existing Residential Housing Societies excluding building covered under 33 (7)

12. Ve Advisory | Debt Syndication | Real Estate Funding | Construction Finance FSI calculation – Gross Plot Area X FSI 4.00 or Rehab component + Incentive for Free sale whichever is higher. So , in some of the cases, FSI may be permitted to exceed more than 4.00 + Fungible (35%) Additional Incentive FSI for Free Sale Component over rehab component – Regulation 33 (10) – Redevelopment for Rehabilitation of Slum Dwellers: Plot Area (in hectares) Additional built-up area admissible under free sale c omponent Upto 1 ha NIL 2 to 4 ha 5% 4 ha to 8 ha 10% 8 ha to 16 ha 15% 16 ha & above 20%

13. Ve Advisory | Debt Syndication | Real Estate Funding | Construction Finance FSI calculation – Location Plot Area (In sqm ) Minimum Road width Zonal FSI Additional FSI % FSI for Transit Tenements of total addn FSI % FSI for Sale Component of total addn FSI Island City Upto 2000 12 m 1.33 Upto 1.67 63% 37% Above 2000 18 m 1.33 Upto 2.67 Suburbs & Extended Suburbs Upto 2000 12 m 1.00 Upto 2 50% 50% Above 2000 18 m 1.00 Upto 3 Regulation 33 (11) – Provisions relating to Permanent Transit Camp (PTC) tenements for Slum Rehabilitation Scheme

14. Thank you!! Prepared by – Hiral Desai Email Id – [email protected] Contact – 96897 98915 Ve Advisory | Debt Syndication | Real Estate Funding | Construction Finance