PMC Takes A Step To Make Housing Attractive, Affordable
The Pune Municipal Corporation (PMC) has taken a crucial step that will be significant in fulfilling the housing needs of the people of the city. PMC has sanctioned new development control regulations allowing higher floor space index (FSI) in certain categories. The move is said to be beneficial for small developments in non-congested areas. Subsequently, this is going to positively impact the real estate in Pune.
MakaanIQ brings you more on the story.
What is FSI?
Floor Space Index (FSI), also called Floor Area Ratio (FAR) is the ratio of the area of floor to the area of plot on which a building stands. For instance, if there is a plot of land measuring one lakh sq ft and FSI permitted for the same is two, then the area for the constructed floor will be two lakh sq ft.
The major categories and permissible FSI as per new DCR are as follows:
- IT sector: Maximum permissible FSI of 3 to develop IT parks and additional FSI could be used by paying a premium to the civic body. IT parks constructed on two hectares or less need to maintain amenity space. A penalty equal to 0.3 % of prevailing ready reckoner value of the built-up area will have to be paid if the place reserved for IT is used of non-IT purpose.
- Government housing: The rule proposed up to FSI of 4 instead of 1 for development and redevelopment of housing for the state government and civic employees. This will prove to be a breather for those who are facing difficulties of insufficient housing.
The latest DC regulation will augment construction activities. Credai Pune Metro chairman, Shantilal Kataria, recently said that the new DC rules will be pivotal in generating employment and increasing the housing stock. The rules allow small businesses in residential zones with extra FSI which would provide jobs, he further added.
Result of increasing Floor Space Index:
FSI guidelines play a vital role in restricting poorly planned or haphazard constructions. Increasing FSI would equip developers to build more on the same plot and thus provide more options to buyers. Lower consumption of land space will also contribute to making homes more affordable.
The new FSI rule will have a considerable impact on commercial developments as well. The central business district (CBD) and off-CBD areas in Pune along the metro route witness land crunch thus, limiting the floor plate sizes and the overall development potential. It is predicted that increasing FSI along the route, would prove very advantageous for development for small-sized commercial projects. The additional FSI is believed to facilitate redevelopment in old city areas, especially in residential segment and could result in lowering the average FSI cost for developers.
Localities to be impacted
The following are the micro-markets which are expected to benefit, with augmented urban development aided by the rise in FSI. Major commercial hubs which is spanned by the proposed Pune Metro, include localities like Deccan, Bund Garden (CBD), Aundh, Wakad, Hinjewadi, Pimpri-Chinchwad (north-west Pune), Yerwada, Kalyani Nagar, Viman Nagar and Kharadi (north-east Pune). IT hubs like Hinjewadi and Kharadi are other key primary residential catchments in Pune.
Other provisions of the new DCR
- As per the new regulation, mixed-used developments of residential and commercial nature, would be permissible on a residential plot in TOD zone.
- PMC has made it mandatory for housing complexes to have solid waste management, commercial establishments, hostels, hospitals with an aggregate built-up area of 4,000 sq mt or more.
- A minimum FSI of 1.50 has been allotted for development in congested areas while the road width is 9 metre. Also, maximum 3 FSI will be allowed for development for road width 30 mt and above. 1.10 FSI will be permitted for non-congested areas.
Also Read: Top 5 Localities For Investment In Pune