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Hindustan Times
29-05-2025
- Business
- Hindustan Times
Maharashtra Housing Policy 2025 offers major benefits for senior living buyers; Stamp duty reduced to flat ₹1,000
The Maharashtra government has finalised the Housing Policy 2025, introducing significant incentives for senior living housing projects. Under the new policy, stamp duty for buyers of such properties has been reduced to a flat ₹1,000, down from the current 5% to 7% of the property's value, depending on the location. In addition to the reduced stamp duty, the government will offer property tax concessions for owners of senior living homes. Developers of these projects will also benefit from various tax relaxations and enhanced Floor Space Index (FSI) allowances. This is Maharashtra's first comprehensive housing policy in nearly two decades. Announced last week, it addresses modern housing concepts such as senior citizen housing and student accommodation, aiming to promote inclusive and future-ready urban development. As part of the Maharashtra Housing Policy 2025, the state government plans to redevelop ageing and dilapidated old-age homes and orphanages located on government land. These facilities will be upgraded and integrated with senior citizen housing projects to better accommodate the growing elderly population. According to the policy, Maharashtra's elderly population accounted for around 10% of the total as per the 2011 Census, higher than the national average. This figure is projected to rise significantly, reaching 17% by 2036. The policy also highlights a shift in social structure, noting that joint families are increasingly giving way to nuclear households, creating a greater demand for independent senior living facilities. The government sees this redevelopment as a crucial step toward addressing the evolving housing and care needs of the elderly. Also Read: Maharashtra approves new housing policy after nearly two decades: 5 key highlights According to market sources, leading real estate developers such as Rustomjee Group and Dosti Realty are preparing to launch dedicated senior living housing projects in Maharashtra in the coming months. To promote this segment, the Maharashtra government, under its Unified Development Control and Promotion Regulations (UDCPR), has introduced a separate category for senior citizen housing or retirement homes. These guidelines are part of the recently announced Maharashtra Housing Policy 2025, which aims to foster inclusive and age-friendly urban development. These measures aim to attract private investment into the senior housing sector while ensuring that the needs of elderly residents are met through thoughtful planning and infrastructure. Also Read: Dharavi redevelopment project gets a push as master plan receives Maharashtra government's approval Real estate developers have welcomed the Maharashtra government's new housing policy, particularly the relaxations and incentives for senior and student housing. They see the move as a progressive step toward addressing the evolving housing needs of specific demographic groups while encouraging private sector participation in these emerging segments. 'Addressing the growing demand for elderly-friendly housing is the need of the hour, and the Maharashtra government's new housing policy has a special mention of this. These actions will help the growth of senior living projects by making development more viable and attractive. Our understanding is that these policy reforms will benefit senior living housing projects in Maharashtra and set a benchmark through thoughtfully designed and well-supported developments," said Anuj Goradia, director of Mumbai-based Dosti Realty. Also Read: Rustomjee Group plans to launch senior living and plotted development projects: Boman Irani The apex body of real estate developers, CREDAI-MCHI, has also welcomed the policy.
Hindustan Times
23-05-2025
- Business
- Hindustan Times
Bengaluru floods: Karnataka may ban basement parking in flood-prone areas; Experts flag higher costs, design challenges
Karnataka is considering a ban on basement parking in flood-prone zones of Bengaluru to improve resilience against urban flooding. While real estate experts agree the move could help mitigate waterlogging risks, they caution it may lead to higher construction costs and design limitations for developers. 'While the idea of banning basements is sound from a flood-resilience standpoint, it's unclear whether it will be viable in the long run,' said an urban expert. Basements typically cost twice as much to construct as ground floors. However, replacing basement parking with additional floors above ground may drive up costs even further, due to the need for extended plumbing, elevator systems, and electrical infrastructure. Additionally, such changes could reduce the efficient use of Floor Space Index (FSI), affecting project feasibility, they say. After the recent flooding in Bengaluru, which claimed the lives of two men while they were pumping water out of a basement in BTM Layout, Karnataka deputy chief minister D.K. Shivakumar announced that the state government is considering a ban on basement parking in low-lying and flood-prone areas. "I am taking a policy decision that wherever there is a low-lying area, we will not allow underground parking facilities in future. We will allow them to build parking spaces at a higher level," he told reporters while on his visit to assess the flood situation across the city. "There is an idea to plan a way to park vehicles on the ground floor, instead of underground. Let people build houses on top of that," he said. This comes amid relentless rainfall that has crippled Bengaluru in recent days, with heavy downpours triggering widespread waterlogging and flooding across the city. From upscale residential areas to major tech corridors, the rains have laid bare the city's fragile infrastructure and poor drainage systems, sparking serious concerns over urban planning and real estate development in flood-prone zones. Also Read: Bengaluru floods: Was the city's Maharaja-era drainage system more effective and in sync with nature? Experts say that eliminating basements may not significantly reduce construction depth. In many cases, foundations still need to be dug to around 6 metres, depending on soil conditions and structural requirements, potentially increasing overall construction costs. 'When a basement is part of the plan, excavation is already accounted for, and since the space is used for parking, there's no need for soil refilling—this offsets some of the construction cost,' said Abhay Gupta, structural consultant. 'Without a basement, however, the excavated area must be refilled entirely, which adds to expenses,' he explained. Experts also noted that basements often cover more area than the actual building footprint, as Bengaluru permits construction up to 2 metres from the boundary wall. "In contrast, ground-level or stilt parking is limited to the building footprint, which restricts capacity. In many cases, a single basement with that extra width can offer the equivalent parking capacity of 2.5 to 3 floor levels," Sarang Kulkarni, managing director, Descon Ventures, said. While basements are typically more expensive to construct, often costing twice as much as a ground floor, adding extra floors to compensate for lost parking can further drive up construction costs due to additional plumbing, elevator, and electrical requirements. 'From a cost standpoint, avoiding basement excavation may seem beneficial,' said Sarang Kulkarni. 'However, this is offset by the reduced ability to fully utilize the Floor Space Index (FSI), which directly affects land value.' FSI, or Floor Space Index, is a key urban planning metric that defines the maximum permissible built-up area on a given plot, effectively determining how many floors can be constructed. Banning basement parking in commercial or retail developments could create significant challenges, experts say. 'Ground-floor space is prime real estate for retail. Without basement parking, that space must be repurposed for vehicles, leaving developers with two choices: build a multi-level car park with retail on the ground floor or position retail between parking levels and office floors above,' said Sarang Kulkarni, Managing Director of Descon Ventures. 'Both options increase the building's overall height.' However, height restrictions—especially in areas near airspace and defence zones like Koramangala, Indiranagar, and North Bengaluru—limit vertical expansion. 'If developers can't utilise the full permissible Floor Space Index (FSI) due to these restrictions, it leads to suboptimal land use. While the basement ban may boost flood resilience, its long-term viability remains uncertain,' Kulkarni said. In contrast, cities like Hyderabad, where FSI limits are more relaxed, allow greater design flexibility. Developers there often allocate the ground and first floors for retail, the second for parking, and the upper floors for office use, creating more efficient mixed-use developments. Also Read: 'Does the area flood?' Bengaluru homebuyers and investors now have fresh real estate worry Experts believe aesthetic concerns about visible parking on lower levels can be addressed, especially in residential projects, by drawing inspiration from global cities. In places like New York, buildings often feature grand ground-floor lobbies and use façade elements such as vertical gardens to screen parking areas. However, construction methods significantly impact feasibility. 'In high-rise residential projects, the Mivan formwork system—known for its speed, monolithic concrete walls, and reduced labour—is commonly used above ground,' said Sarang Kulkarni. 'Basements, however, typically require traditional beam-and-column structures to facilitate vehicle movement, which Mivan isn't suited for due to its continuous wall design.' If parking shifts above ground, developers must blend traditional construction with Mivan formwork, potentially increasing timelines and costs. Another key concern is building height. 'If a project has a 60-metre height cap and 15 metres are used for above-ground parking, only 45 metres remain for residential units. This could reduce the number of floors, affect developer revenues and pushing up apartment prices,' Kulkarni noted. While multi-level parking structures are a possible workaround, they often sacrifice green or open spaces. Experts also warn that property values in low-lying or flood-prone areas could decline, as developers may avoid these zones due to the added challenges of parking and drainage constraints. Experts suggest podium-level construction as a potential solution. Developers can build a raised concrete podium with a sealed, box-like structure beneath it for parking. Ramps can connect this podium to the basement, preventing groundwater seepage while preserving the advantages of underground parking. 'In cities like Mumbai, developers are sometimes granted additional height allowances when basements are used for parking,' said Gupta. 'On larger plots, basement areas can extend beyond the building's footprint, offering more flexibility and capacity—something that's difficult to achieve with stilt or above-ground parking due to zoning restrictions.'
Hindustan Times
10-05-2025
- Business
- Hindustan Times
Reimagining Mumbai: experts call for better public transport, affordable housing, natural open spaces
Mumbai: Mumbai cannot handle the burden of the exponential redevelopment boom it is undergoing, and an alternative is direly needed: this was the consensus that emerged at a panel discussion titled Reimagining Mumbai's Future, held at The Asiatic Society on Friday evening. 'If you replace a neighbourhood of densely packed four-storey buildings with 20 40-storey buildings, like in Bhendi Bazaar, you will face the consequences,' said Mustansir Dalvi, an architect and professor. Organised by Art Deco Mumbai, the panel featured the platform's founder trustee, Atul Kumar, speaking with Dalvi, conservation architect Vikas Dilawari, and Dr Jehangir Sorabjee, head of the department of medicine at Bombay Hospital. Mumbai, in the past, has been a city that has used crises, like the plague, to propel itself towards improvement, said Kumar. 'Planned neighbourhoods, like Matunga, Shivaji Park, and Colaba backbay, emerged through the Bombay Improvement Trust (BIT), which was formed after the plague in 1896. These had grids, wide roads, parks, and schools, which all formed a complete neighbourhood.' Things changed, in part, due to Mumbai's ever-increasing population, which Sorabjee's profession took the fall for. 'In the 1920s, the average lifespan in Mumbai was 26 years,' he said. 'In the 1950s, it was 34 years. In the 1990s, it was 56 years, and now it is 70 years. Every two years, the number of people in the city increases by a million.' But one crucial change has led Mumbai to the point it is at today. 'Mumbai had building codes that restricted the height of buildings depending on the width of the road, based on an angle, to ensure homes on the ground floor received adequate sunlight and air,' said Dalvi. 'This changed when, in the '60s, the first Development Plan (DP) brought in the concept of Floor Space Index (FSI), replacing housing's primary aim of habitability with monetisation. This is what has led to terms such as carpet area, built-up area, super built-up area, etc. Housing is now about exchange value.' Dilawari also pointed fingers at the Rent Control Act, which was introduced in 1999. While most countries have abolished it, it continues to incentivise landlords in Mumbai to keep old buildings unmaintained and instead opt for redevelopment. With real estate's force as a market, fueled by speculation, Dalvi remarked that Mumbai has changed from being a rental city to one obsessed with ownership. This has come with a decrease in open spaces, unplanned development, and a lack of affordable housing. All of these factors meant the panel at large was not optimistic about Mumbai's future. 'In the next three to five years, the consequences of the way Mumbai is changing will fructify,' said Kumar. Sorabjee spoke of his ground-floor home being surrounded now by five immense towers. 'This has become a very stressful city, and there is little harmony left in it,' he said. 'We have been witness to development that is largely car-centric and for the upper middle class and wealthy. Those who need and use public transport, unfortunately, do not have a strong lobby or political will attached to it. A lot of the decisions are being made ad hoc, like the six-lane road at Marine Drive, without proper traffic studies and assessment of the impact on the area,' Sorabjee added. When Kumar asked the experts what was on their wish list for the city, a few unanimous choices emerged: better public transport, affordable housing and natural open spaces. 'If we can concentrate on these few things, the future of the city can still be turned around, and it can be given a chance to shine,' said Dilawari. Climate change weighed heavily on Dalvi's mind, who reckoned that without attention being given to it, Mumbai by 2050 will revert to its original state of seven disparate islands. When an audience member asked if there remained any hope for the neglected suburbs of the city, Malad in particular, Sorabjee was pessimistic still. 'That would take a crisis,' he mused.
Hindustan Times
10-05-2025
- Business
- Hindustan Times
Deemed conveyance can't be denied due to delay on part of the builder: HC
MUMBAI: In a significant ruling strengthening the rights of homebuyers, the Bombay high court (HC) on Friday held that a developer's failure to complete a housing project within the stipulated time cannot be used as a reason to deny flat owners their right to deemed conveyance under the Maharashtra Ownership Flats Act (MOFA), 1963. Deemed conveyance refers to the legal transfer of land and building title from the builder to the housing society, even without the builder's cooperation, once the society is formed and other legal conditions are met. Justice Amit Borkar, presiding over a single-judge bench, passed the order while allowing a petition filed by an association of three cooperative housing societies. The group had challenged a decision by the competent authority rejecting their application for deemed conveyance. The dispute dates back to 1995, when Abhinav Real Estate Pvt Ltd (now Neelkanth Realtors Pvt Ltd) undertook the development of 52,609 sq m of land in Majiwada, Thane. This development plan was reaffirmed in 2002. Eventually, eight residential buildings housing 740 flats and 29 commercial units were constructed and sold to individual buyers. Housing societies — Rameshwar CHS (2004), Mansarovar CHS (2005), and Girija CHS (2011) — were formed under MOFA. In 2024, frustrated by the builder's prolonged failure to execute conveyance deeds, the three societies joined forces and formed an association to seek deemed conveyance from the competent authority under MOFA. However, the builder opposed the move, arguing that the association was formed improperly and that it was already facing de-registration proceedings. The competent authority rejected the application, citing that the land was part of a larger layout and that the builder had plans for further development using additional Floor Space Index (FSI) and Transferable Development Rights (TDR). Justice Borkar dismissed the developer's contentions, stating, 'The right of flat purchasers to receive conveyance crystallises once the society is formed. This right does not depend on any vague promises or future intentions of the promoter to construct additional buildings or complete an entire layout.' He added, 'Once a reasonable time has passed, the promoter is legally bound to convey the property. In this case, the promoter has neither completed the remaining development nor provided any concrete plan to do so. They cannot be permitted to use their own delay as a shield to obstruct the rights of the society.' The court directed the District Deputy Registrar, Cooperative Societies, Thane, to issue a deemed conveyance certificate to the association, effectively granting ownership rights to the housing societies.
Hindustan Times
08-05-2025
- Business
- Hindustan Times
Over 25,000 buildings in Mumbai Metropolitan Region eligible for redevelopment with ₹30,000 cr value: CREDAI-MCHI
Over 25,000 buildings across the Mumbai Metropolitan Region (MMR) are eligible for redevelopment, with the total estimated project value exceeding ₹30,000 crore, according to a statement issued by real estate developers' apex body CREDAI-MCHI on May 8. The organisation emphasized that unlocking Mumbai's full redevelopment potential requires directly addressing viability issues. "Approval costs in Mumbai stand at ₹55,200 per square metre, significantly higher than ₹1,800 in Pune and ₹5,500 in Delhi. This highlights the disproportionately high development charges in the city," CREDAI-MCHI stated. The apex body was reacting to Bombay High Court's ruling that clarified that GST is not applicable where homeowners appoint a developer to carry out redevelopment work. The legal representatives of CREDAI-MCHI also said that the court merely ruled that GST on development rights is not payable under the reverse charge mechanism—it did not abolish the tax altogether. Also Read: Motilal Nagar Redevelopment: 5 things to know about Adani Group's latest acquisition in the Mumbai real estate market The legal representatives stated that developers remain exposed to legal and financial risk until the GST Council or a larger bench of the High Court gives a conclusive verdict. The Bombay High Court last month clarified that GST is not applicable to developers where homeowners appoint a developer to carry out redevelopment work, provided there is no sale or Transfer of Development Rights (TDR) or Floor Space Index (FSI). The court quashed the tax demand, noting that the agreement was purely for construction and did not involve any transfer of TDR or FSI. Harsh Shah, Partner, Economic Laws Practice (ELP)added, "The confusion around the GST treatment of development rights has resulted in a wave of litigations across the country—with cases pending in Bombay, Delhi, Gujarat, and Karnataka High Courts. The judgment by the Nagpur bench of the Bombay High Court has been misinterpreted in some quarters as a blanket exemption from GST, which is inaccurate." 'A clear and consistent interpretation of GST law, in line with the nature of redevelopment transactions, is essential to restore confidence in the sector,' Shah said. Also Read: Shahrukh Khan's sea-facing building on Mumbai's Carter Road may go in for redevelopment According to Rohit Jain, Deputy Managing Partner, Economic Laws Practice (ELP), "Developers today face up to four layers of GST—5% on sale to customers, 18% on transfer of development rights, 5% on units handed back to existing residents, and non-creditable GST on construction materials." Jain said, "These cascading taxes severely impact margins and slow down redevelopment. It is important to clarify that despite recent high court rulings, GST is still applicable—either under forward or reverse charge mechanisms—and the confusion in interpretation must be addressed urgently. "CREDAI-MCHI, along with several developers, has made detailed representations to the GST Council, and we hope for swift intervention to reclassify development rights as immovable property, which should not attract GST under prevailing laws," Jain said. Also Read: Dharavi Redevelopment: 5 highlights of the master plan and the ongoing survey "When you add layers of GST and regulatory ambiguity to that, projects simply do not take off. Solving these issues is not just about helping developers—it is about providing safer homes to thousands living in dilapidated buildings, improving urban infrastructure, and unlocking housing supply," said Sunny Bijlani, Joint Secretary, CREDAI-MCHI. "Fixing GST interpretation and aligning taxation to ground realities can significantly accelerate redevelopment. These are low-hanging fruits with massive economic and social impact, and we urge decision-makers to act swiftly," Bijlani said. The apex body concluded in the statement that the Bombay High Court judgment is expected to stimulate redevelopment in Mumbai,a city where vertical growth remains the most practical solution amid limited land availability and ageing infrastructure.
