A cartelisation of Mumbai’s real estate, in the case of transferable development rights has hiked the prices and also led to worries amongst policy makers.
A recent development shows that mere 6 builders are in charge of 70% of the 2.5-3 million sq ft available TDR. The price of TDR has also gone up to Rs 2,500-Rs 3,000 per sq ft from Rs 800-1,000 sq ft during the last 6 months.
Realty sector experts said the Mumbai cartel had led to an increase in TDR prices nearly each month. The development follows a 2008 order of the High Court that stayed a state government decision to permit 33% additional building rights (in terms of FSI) in lieu for higher premium.
An unnamed state government official, said the government may go to the court soon to repeat its request for extra FSI. If permitted, it will prevent the cartel from increasing prices randomly, he said.
Sunil Ahir, Maharashtra’s minister of state for housing, said: “The government will take all necessary measures to curb cartelisation in the use of TDR in Mumbai.”
But Nainesh Shah, executive director of Everest Developers said that TDR rates can go down only if there is more land available and this is possible only if government is willing.
Even with cheap home loans available, most homes are beyond the reach of the common man.