DCPR 2034 Unleashing MUMBAI’S Economic Potential A comparative study of Development Control Regulations 1991 and 2034 in Mumbai INTRODUCTION INTRODUCTION GENERAL APPLICABILITY Real estate plays a crucial role in Mumbai’s economy The DCPR 2034 : and the government has been making concerted efforts to ensure that the sector functions efficiently and in a Came into effect from 1st September 2018 with some transparent manner in the city. With the launch of the 1. provisions notified later on 13th November 2018. Revised Draft Development Plan (RDDP) 2034 in May 2018, the state government laid down its vision for the city’s growth over the next two decades. Suggestions 2. Will govern all the building development activity were taken from various stakeholders, including the public, and development work in the entire jurisdiction of while formulating the plan. The Development Control and Municipal Corporation of Greater Mumbai (MCGM) Promotional Regulations (DCPR) 2034, which came into for the next two decades. effect in September 2018, is based on the provisions of the RDDP. 3. Will cover new redevelopment projects that are yet to obtain IOD/CC. Partially completed projects, which In order to revitalise Mumbai’s economic potential, there were started before the DCPR 2034 came into effect, is a need to give a concerted push to new development may be continued as per old regulations. However, while also seeking to redevelop private housing societies, if the owner/developer seeks further development cessed buildings, slums & MHADA colonies. Land in Mumbai permissions, then the DCPR 2034 provisions shall remains a scarce commodity and thus redevelopment is apply to the balance portion of the development. crucial for the city’s future. Hence, a policy framework The development potential of the entire plot shall is needed to promote redevelopment in a sustainable way and bring about meaningful change on ground. For a smooth transition to the new regime, the state The newly framed development plan (DP) emphasises government has also introduced the Transitional Policy sustainable development by striking a balance between (Circular T-5), that deals with the applicability of DCPR the city’s economic growth, protecting the environment 2034 for ongoing projects. and ensuring social justice for its citizens. It envisions Specifically, for plots designated under accommodation- a faster pace of growth for Mumbai, an improved living reservation and admeasuring 4,000 sqm and above, which environment and enhanced provisions of equitable must provide for amenities, but on account of planning livelihood and physical and social infrastructure. The DP and any other constraints are incapable for providing makes all the right noises, but implementation of some of the required amenities space, some options have been the objectives may be challenging. proposed for the project developer/proponent. These are listed as below: Development Plan If amenities space provision is up to 200 sqm – In DCPR 2034 a. 2034 Legal Provisions for case of non-provision, payment of premium at Vision document and manifestation of DP 100% of ASR of developed land as per required area spatial framework + provisioning for amenities If amenities space provision works out to be 200 sqm While RDDP 2034 sets out the spatial framework of b. or higher – the city for delivery of sustainable development and enhanced quality of life for all its citizen, DCPR 2034 lays Option 1: Provide built-up amenities equivalent to 100% of out the legal provisions guiding the framework. Hence Zonal Basic FSI of amenities space at ground or 1st/2nd floor DCPR 2034 is read in conjunction with RDDP 2034. with separate access. Option 2: Provide built-up amenities equivalent to 50% of DCPR is a crucial policy document as this plan will govern Zonal Basic FSI of amenities space at Ground or 1st/2nd floor and regulate the construction activity up to 2034 and with separate access and reimburse the value of remaining it can alter the growth trajectory of Mumbai provided it 50% space to MCGM. is implemented properly. The DCPR 2034 encompasses Option 3: Pay the premium at 100% of ASR of developed land a vast universe: in this report we have analysed and for not providing any amenities space. evaluated the key points of the plan. There are some interesting aspects as well as few shortcomings that need The project developer/proponent had to be in compliance to be looked at. with the Transitional Policy by 31st December, 2019. 2 DCPR 2034: Unleashing Mumbai’s Economic Potential DP GOAL 1 - Maintaining Mumbai’s Economic primacy DP Goal 1 - Maintaining Mumbai’s economic primacy The DCPR 2034 : WHAT Mumbai’s Share in India’s GDP One of the main goals of Mumbai’s development plan 180 3.40%3.40% is to maintain Mumbai’s economic primacy, not just in 160 Trillions 3.20% Maharashtra but across India. In recent years, the city 3.20% 140 has been losing ground to cities such as Bengaluru and 3.00% 3.00% 120 Hyderabad in terms of new office space creation. 100 2.80% 2.80% 80 2.60% 2.60% Office space supply addition in the Top 6 cities 60 2.40%2.40% 40 100 16.00%16% 2.20% 2.20% GDPIndia of at Current Price in INR 20 90 14.69% in INR Trillions Prices Current India GDP at 14.00%14% 2.00%2.00% 0 Millions 80 ( 12.00%12% 21 (in sf) - 70 Source: RBI Database 10.00%10% ) 60 9.75% 9.20% RDDP MARKET 50 8.20% 8.31% 8.00%8% ESTIMATES FACTS 6.70%% 40 6% 6.00% 0.5:19.5:80 1:31:68 30 4% 4.00% Inventory Growth CAGR 20 Projected Sectoral Sectoral share of 2.00%2% share of Primary- Primary-Secondary- 10 Cumulative office supply addition in msf (2010-2021F) office Cumulative Secondary-Tertiary Tertiary Economic Office Space Supply from 2010 0 0.00%0% Economic activity by activity as of 2019 BangaloreBengaluru Delh i NCR Hyderabad Mumbai Pune Chennai 2034 Office Supply(2010-2021F) 2010-21 CAGR (%) Source: Cushman & Wakefield Research 8 Mn 5.2 Mn WHY Estimated Workforce To accommodate future employment needs and offer total workforce participation as competitive rentals to corporates, the city needs to create participation in by of 2019 more office space. 2034 HOW 12.5 Sqm 7.5 – 8.5 Sqm DCPR 2034 has proposed several approaches to create room in the space-constrained commercial sector, Per Capita Office Per Capita office particularly in key city locations. space consumption - space consumption – assumed market standard 1. Increasing the permissible Floor Space Index (FSI) 2. Through re-development of cotton textile 10,000 Ha. 1304 Ha. mill lands Office space Estimated total office inventory as of 2019. Through conversion of industrial plot 3. space requirement (Excluding office by 2034 space occupied Additional FSI for IT/ITeS, Smart Fin- in residential 4. apartment) Tech centres and Biotechnology centres Source: Cushman & Wakefield Source: RDDP 2034 Research DCPR 2034: Unleashing Mumbai’s Economic Potential 3 DP Goal 2 - Slum free Mumbai and housing for all DP Goal 2 - Slum free Mumbai and Housing for All WHAT Greater Mumbai Population Growth Greater Mumbai Population Growth Shortage of affordable housing is persistent in Mumbai 14000 and the demand-supply gap is consistently growing 12000 10000 despite several policy interventions by both central Thousands 8000 Eastern suburbs and state governments. Specifically, the housing gap 6000 Western suburbs Island City for the Economically Weaker Section (EWS) and Low 4000 Income Group (LIG) population is enormous and that (in ‘000s) Population 2000 has led to the creation of slum clusters in prime areas 0 1971 1981 1991 2001 2011 2034F within Mumbai. Source:District Census Handbook - Mumbai & Mumbai Suburbs from 1971 to 2011 RDDP MARKET WHY ESTIMATES FACTS To accomodate future housing needs and offer a 11.40 Million 12.96 Million better dwelling experience to the slum and residents, the city needs to create adequate affordable housing Estimated stock. Estimated Population Population as of by 2034. comprising 2019, comprising of 2.85M households of 2.94M HOW households DCPR 2034 has proposed several new approaches to create affordable housing stock through partnership such as: 4.0 41.3% Average household City population 1. Inclusionary Housing Policy size in Mumbai to residing in slum or decline from 4.4 to 4.0 slum like condition by 2034 2. RDDP Affordable Housing Scheme on Special Development Zones (SDZ) 1.1 Million 1.2 Million Target to built 1.1M Reserved Affordable Housing Plots Shortage of 3. Affordable Housing Affordable Housing Units in MMR by 2034, units in Greater out of which 790,000 Mumbai as of 2019 targeted in GM 26,000 Ha. 10,327 Ha. Area under formal Total area required for residential land-use housing by 2034 as of 2012 Source: Census of India 2011, Source:RDDP 2034 Existing Land Use 2012 4 DCPR 2034: Unleashing Mumbai’s Economic Potential DP GOAL 3 - Endow city with enchanced environment and quality of life DP Goal 3 - Endow city with enhanced environment and quality of life WHAT The city of Mumbai has a huge deficit of public 1/3rd of DP 1991 open spaces and amenities. The only planned and maintained public open spaces are the ones that implemented came up during the colonial rule, while the city Mainly from Road development and administration has paid little attention in this direction Non-Agriculture land conversion in the post-independence period. This has resulted in degraded standards of per capita public space Source: RDDP 2034 availability. Implementation of the previous Development Plan fell far short of the proposed volume of amenities. It 7834 Ha.