Mumbai Suburbs’s Real estate prices may increase by approx 25% in next year due to a hike of Transferable Development Rights (TDR) rates. In the eastern suburb of Mulund, TDR rates have risen from ₹3,500 per square foot 6 months ago, to ₹6,000 per square foot. Likewise, in western suburb of Borivali, TDR rates have jumped from ₹3,000 per square foot to ₹5,700 per square foot during the same period.
Surge in TDR rates is due to the increased demand from developers to utilize TDR to construct more projects beyond their primary permitted Floor Space Index (FSI). FSI means a measure of how much construction is allowed on a given plot of the land. The robust demand for housing in Mumbai is another element of prices rising. Over 1.5 lakh places of residence have been sold in Mumbai Suburbs in the last year, and more than 40,000 places of residence have been sold in the past 4 months.
Source – Lokmat Times
