GCCI proposes addl FSI approval for affordable housing
AHMEDABAD: Affordable houses are still a distant dream for 70 per cent middle income inhabitants of the city. With state government now proposing to allow development on just 50 per cent land in 10 new town planning schemes, be prepared to shell out at least 1.75 times the existing rates in these areas.
Worried about skyrocketing realty prices, a delegation of members from Gujarat Chamber of Commerce and Industries (GCCI), Gujarat Institute of Housing and Estate Developers (GIHED) and real estate developers associations will present a host of measures to the state urban development department to help stabilise realty prices.
The chamber's real estate committee has submitted a proposal where builders can avail additional Floor Space Index (FSI) in lieu of reserving 20 per cent area of plots for economically weaker section (EWS) and lower income group (LIG) houses. The government via a nodal agency can construct houses for LIG and EWS housing in these plots. GCCI and GIHED states that almost 80 per cent of the 10 crore sqm land in the new AMC area is for low rise.
"We are offering free land to the government for LIG and EWS housing. Subsidies from Central government, lower interest rates on bank loans for LIG and EWS housing can further pull down the costs. We have suggested that developers may be given transferable development rights (TDR) at some other place if the additional FSI is not utilised. By these measures, we can keep prices of affordable houses below Rs 20 lakh," said chairman of GCCI real estate committee, Vijay Shah.
President, GIHED, Suresh Patel said, "If government enforces only 25 per cent deduction for civic facilities on self for residence (SFC) plots in TP schemes, an additional 15 per cent area can be exclusively utilised for MIG housing. This can range from 80 sqm to 100 sqm space flats. While we have also suggested that if low-rise R2 and R3 zones (for low-rise and bungalow schemes) in the newly areas amalgamated in AMC areas are converted to R1 (high-rise) residential zones, affordable housing can come up in apartments. Lesser availability of land for construction is causing land prices to shoot up."
Ironically, in areas like Bodakdev and Thaltej which are low-rise residential zones, the UD department has approved two high-rise hospitals recently by selling FSI to the developers. Such policies, according to developers, are lopsided towards a few powerful lobbies and deny rights to the nearly two lakh individuals who require houses in the range of Rs 5 lakh to Rs 20 lakh.
Worried about skyrocketing realty prices, a delegation of members from Gujarat Chamber of Commerce and Industries (GCCI), Gujarat Institute of Housing and Estate Developers (GIHED) and real estate developers associations will present a host of measures to the state urban development department to help stabilise realty prices.
The chamber's real estate committee has submitted a proposal where builders can avail additional Floor Space Index (FSI) in lieu of reserving 20 per cent area of plots for economically weaker section (EWS) and lower income group (LIG) houses. The government via a nodal agency can construct houses for LIG and EWS housing in these plots. GCCI and GIHED states that almost 80 per cent of the 10 crore sqm land in the new AMC area is for low rise.
"We are offering free land to the government for LIG and EWS housing. Subsidies from Central government, lower interest rates on bank loans for LIG and EWS housing can further pull down the costs. We have suggested that developers may be given transferable development rights (TDR) at some other place if the additional FSI is not utilised. By these measures, we can keep prices of affordable houses below Rs 20 lakh," said chairman of GCCI real estate committee, Vijay Shah.
President, GIHED, Suresh Patel said, "If government enforces only 25 per cent deduction for civic facilities on self for residence (SFC) plots in TP schemes, an additional 15 per cent area can be exclusively utilised for MIG housing. This can range from 80 sqm to 100 sqm space flats. While we have also suggested that if low-rise R2 and R3 zones (for low-rise and bungalow schemes) in the newly areas amalgamated in AMC areas are converted to R1 (high-rise) residential zones, affordable housing can come up in apartments. Lesser availability of land for construction is causing land prices to shoot up."
Ironically, in areas like Bodakdev and Thaltej which are low-rise residential zones, the UD department has approved two high-rise hospitals recently by selling FSI to the developers. Such policies, according to developers, are lopsided towards a few powerful lobbies and deny rights to the nearly two lakh individuals who require houses in the range of Rs 5 lakh to Rs 20 lakh.
