Mumbai has a new ‘Plan’ for 2034

Key recommendations proposed in the new Development Plan which will have a bearing on Mumbai’s real estate and construction landscape

17 May 2018

By Anshuman Magazine

Mumbai has a new ‘Plan’ for 2034
The Maharashtra government recently gave a go ahead to the Revised Draft Development Plan – 2034 for the Municipal Corporation of Greater Mumbai (MCGM). MCGM areas include Colaba in the south to Mulund, Mankhurd, and Dahisar in the north. The original plan was supposed to come up in 2014, but was pulled back later in 2015 to accommodate recommendations from relevant stakeholders and reflect public feedback.

Here are some of the key recommendations proposed in the new plan, which will have a bearing on Mumbai’s real estate and construction landscape:

Affordable housing

One of the primary objectives of the new development plan (DP) is to free up land in the space-starved city and give a fillip to affordable housing. The government has revealed its plan to build nearly 1 million affordable housing units on a major portion of the new lands that will be released for development. This is a part of the state government’s overall effort at supporting the ‘Housing for all by 2022’ initiative of the central government. 

  • For this purpose, the plan has allowed unlocking of a portion of no development zone, salt-pan land and tourism development areas in the city.
    The DP also proposes creation of two Special Development Zones (SDZ); SDZ I would be used for slum redevelopment projects and SDZ II for affordable housing units.
  • A permissible Floor Space Index (FSI) of 4 has been proposed for affordable housing projects with an aim to reduce the land cost per residential unit. In addition, the DP has proposed raising the permissible FSI for commercial and residential projects in the island city, suburbs and extended suburbs.
    Commercial office segment
  • To facilitate employment creation in the city, the DP provides incentives to commercial buildings by allowing them extra FSI based on their location, thereby increasing their overall development potential. Permissible commercial FSI has been increased to 5 and charges for fungible FSI have been reduced from 100% of ready reckoner rate to 60%.

Other key provisions

  • The city’s open spaces have been marked as no-construction areas even as more than 12,000 hectares have been identified as natural spaces (hills, mangroves and eco-sensitive zones) where no development would be allowed.
  • The plan has earmarked land belonging to Mumbai Port Trust (MbPT) as Port’s Water Front Development Zone. MbPT shall prepare a detailed master plan for the development of this zone as per the DP provisions.
  • Cluster Development Scheme (CDS) has been proposed for reconstruction and redevelopment of buildings over a minimum area of 4000 sq. m. in the island city.

The planning committee has made their recommendations on the Draft Development Plan 2034 which are expected to be incorporated in the final development plan for MCGM. In addition, a few other upcoming policies are likely to affect the provisions of the final DP


Once implemented, the new Mumbai DP is expected to significantly alter the city’s real estate landscape. Provision of additional FSI for both commercial and residential segments is expected to release additional supply across various pockets in the city. The rise in FSI and infusion of fresh land, as envisaged by the DP, will help accommodate more population into the island city, even though the city is already bursting at its seams with a population density of nearly 20,000 people/sq. km (according to the Census of India, 2011). The DP also fosters affordable housing by providing complete entitlement to the owner/developer, irrespective of the permissible FSI. This would help facilitate the creation of affordable housing stock in the long run.