Mumbai goes vertical in search of space

Mumbai: To allow creation of more jobs in Mumbai, the state government has, in the new development plan, doubled the floor space index (FSI) for office buildings from 2.5 to 5. It means that on a 1,000 sq m plot, a developer can build 5,000 sq m.

Ashutosh Limaye, (headresearch) at JLL India, said the move will boost employment. “Firstly, there will be a big demand for construction labourers. Secondly, more office space will attract corporates to Mumbai instead of another city,” he said adding that enhanced FSI will offer more office space in established office districts. A recent JLL report said Mumbai is among the top-five cities globally that will see the maximum addition to its office footprint in 2018. The city is expected to add up to 14% of its current stock of 109 mn sq ft grade-A office space.

The DP shows significant hikes in FSI for commercial, retail and hospitality, for financial technology and bio-tech parks, medical and educational hubs.


Municipal commissioner Ajoy Mehta said that an MMRDA study of population trends showed that an employee requires about 10 sq m of working space in the new knowledge economy. More commercial FSI is needed to create jobs for which office space is required, he said.

Builder Niranjan Hiranandani said GDP growth will not happen only because of industrial production. “Commercial activities will play a major role in enhancing GDP growth,” he said adding that “the FSI hike for commercial real estate is expected to also encourage employment and economic development”.

However, housing activist and architect P K Das said more office space does not expand business turnover. “It is a lame excuse to enable growth and business. Just constructing more office buildings is not enough. We know that in Mumbai 15% to 20% commercial space is lying vacant.” Das said that the government’s logic is “skewed”’. “Investors and builders are not fools to pump in money just because FSI is high. The ‘build more’ syndrome will be counter-productive,” he added.

JLL’s Limaye, too, said that developers would check the feasibility and demand for office space first. “It (more FSI) does not mean it will lead to more construction,” he said. He added, “On one hand, we have established office districts where the new DP is proposing further densification but the existing infrastructure is not geared towards handling re-densification. On the other hand, emerging business districts that are farther from the city centres have local infrastructure that is better suited to handle further densification.”