The Gujarat government is ready with new policies for housing and slum redevelopment, under which it will give over 3.0 FSI (Floor Space Index) as well as transferable developmental rights (TDRs). This is expected to give a big boost to the state’s real estate sector.
Under the new policy, redevelopment of private housing colonies will also be allowed. The new policy will also encourage vertical growth and make 12storey buildings mandatory for slum redevelopment. It will also permit sale of commercial space on prime land.
In 2013, a slum redevelopment policy was announced but it failed to attract developers because of many restrictions and lack of financial incentives. Hence, the government decided to revise the old policy
The main aim of the housing and slum development policies is to increase the scope of affordable housing for the poor and the lower and middle income groups.
A senior official of the state urban development department said that both the policies are expected to be announced during the assembly’s upcoming budget session or maybe even before that.
“Under the redevelopment policy , housing colonies of the Gujarat Housing Board, Slum Clearance Board, other government-run public housing colonies and local bodies such as Ahmedabad Municipal Corporation and Ahmedabad Urban Development Authority (AUDA) will be auctioned for redevelopment in public-private partnership. To increase the scope of the policies, the government has decided to allow redevelopment of private housing colonies, too, on the same lines as government-owned housing colonies,” said the official.
Sources said that under the redevelopment policy, residents of a housing colony will get new houses without extra cost or at very nominal rates while the developer will get a chance to earn by selling other housing units and commercial space developed on old colonies. Currently, the FSI allowed is 1.2 in R2 zones; and 1.8 in R1 zones with 0.6 to 0.9 chargeable FSI.
“Under the new policies, the developer will get more than 3 FSI without any charges. This will be a big financial incentive to developers. For the first time, builders will be allowed to trade TDRs in open market,” said a source.
“Moreover the focus of the policy will be on vertical development. Construction of a minimum 10 to 12-storeys will be made compulsory. As most of the old colonies are just 2 to 4 storeys high, builders will get a lot of space to sell,” the source said.
The government may also provide residents of old housing units and even slum dwellers alternative accommodation in rented government buildings when redevelopment work is going on.
In most cities similar to Ahmedabad, public housing owned by housing boards and other such government agencies have large low-rise colonies with open land at prime locations such as 132-ring road in Ahmedabad. It is in such cities that there is huge scope for redevelopment, said the source.