Realty Prices May Rocket On Back Of Dharavi Revamp Tdr, Real Estate News, ET RealEstate
MUMBAI: City builders will now have to mandatorily utilise the transfer of development rights (TDR) from the Dharavi redevelopment project, according to a new notification from the state urban development department. It said 40% of the TDR to be utilised in a building project must be from the Dharavi project.
Property market sources fear real estate prices in Mumbai may shoot up once TDR from the Dharavi revamp project becomes available.
The notification issued on November 7 states, “The quantum of TDR will be equivalent to the floor space index. The maximum sale price of TDR shall not exceed 90% of the value of land (the receiving plot) of the year of loadi-ng the TDR.” Objections and suggestions are to be submitted within a month, it added.
Real estate industry experts said: “At 90% of the land cost, the Dharavi TDR will be the most expensive TDR. Currently, the average price of TDR is 30-60% of the Ready Reckoner rate.”
Sunit Gupta, an expert on property valuation, said while the redevelopment of Dharavi may require such incentives, the disincentive is that the price of a flat in Mumbai will rise significantly. “If the price of a plot in Malabar Hill is Rs 1 lakh per sq m, the price of the Dharavi TDR will be 90% of that price, which is Rs 90,000 per sq m. The price of a flat will automatically shoot up,” he explained.
Congress MLA from Dharavi Varsha Gaikwad termed it ‘Modani TDR’ and alleged that by issuing the notification, the Eknath Shinde-led government wants to “virtually hand over control of Mumbai’s real estate market to the Adani group”. “Making it mandatory for all real estate construction to purchase at least 40% of their TDR is squarely to establish Adani group’s illegal monopoly of the TDR market,” she said.
Pankaj Kapoor, founder and managing director of Liases Foras, a real estate research agency, said, “Post-RERA, the housing market today is driven by demand and supply. As compared to other metros, flat prices in Mumbai have shown least growth as the city has the highest inventory and the highest number of new launches following the discount on premium. Supply has grown keeping prices in check. Builders are now more financially disciplined as projects are required to be completed in time. If the TDR makes a project financially unviable it will simply not be used.” The notification states that the quantum of total TDR generated from Dharavi and available for utilisation shall be displayed on BMC and DRP websites with real-time update for information to the general public.Gaikwad warned that if the decision is implemented, it would make redevelopment by small builders unviable and set an ugly precedent wi-th disastrous consequences. “We shall oppose it,” she said.