[ecis2016.org] The Pune Municipal Corporation has sanctioned new development control regulations, permitting higher floor space index in certain categories in non-congested areas. We examine how this will impact the real estate scenario in the city
The Pune Municipal Corporation recently sanctioned the new development control regulations (DCR), which allows for higher floor space index (FSI) in certain categories, in non-congested areas. Small developments are likely to benefit more from this higher FSI.
Major categories and permissible FSI
|Category||Maximum permissible FSI||Road width (in meters)||Minimum plot area (in sq metres)|
|Transit-oriented development (TOD) zone along the proposed metro corridor (TOD zone will be delineated by the Pune Municipal Corporation, with the approval from the state government)||2.00||9m and up to 12m||< 1,000|
|2.50||12m and up to 18m||≥ 1,000|
|3.00||18m and up to 24m||≥ 2,000|
|3.50||24m and up to 30m||≥ 3,000|
|4.00||30m and above||≥ 4,000|
|MHADA development and redevelopment projects||2.50||–||–|
|Housing for government staff||4.00||18m or above||≥ 4,000|
|3.00||12m and up to 18m||–|
|Information technology (IT) establishments||3.00||–||–|
|Griha or IGBC-certified green buildings||3% to 7% extra FSI based on rating of the building|
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A few other provisions of the new DCR include:
- Mixed-used developments of residential and commercial nature, may be permissible on a residential plot in the TOD zone.
- Solid waste management mandatory for housing complexes, commercial establishments, hostels, hospitals with an aggregate built-up area of 4,000 sq m or more.
Impact on commercial developments
The metro route, a majority of which passes through the central business district (CBD) and off-CBD areas in Pune, will not fetch significant benefits for commercial and IT building developments, as limited land is available in these locations, thereby, limiting the floor plate sizes and the overall development potential. The IT sector already had up to 3.00 FSI under the most recent Maharashtra IT Policy. Hence, increase in FSI along the metro route, will not be of much use for larger establishments but it is an instrumental development for small-sized commercial projects. Moreover, increase in FSI should also go in conjunction with adequate infrastructure facilities being developed. The additional FSI is expected to aid redevelopment in the old city areas and more specifically in the residential segment and hopefully, could lead to lowering the average FSI cost for developers.
Regions that will be impacted by Pune’s new DCR
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The proposed Pune Metro runs through major commercial zones of the city, which include Deccan, Bund Garden (CBD), Aundh, Wakad, Hinjewadi, Pimpri-Chinchwad (north-west Pune), Yerwada, Kalyani Nagar, Viman Nagar and Kharadi (north-east Pune). Hinjewadi and Kharadi have a large concentration of IT establishments and are also one of the primary residential catchments in Pune. These micro-markets are likely to expand further, with augmented urban development aided by the rise in FSI.
However, as explained above, the primary beneficiary would be only the small commercial developments located along these corridors. In our opinion, the approved change in FSI norms will be a positive step for the city, if the current and the future infrastructure demand is kept in check, by focusing on development in the infrastructure sector.
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