Maharashtra Boosts FSI-Free Recreational Spaces to 4%, Real Estate Industry Rejoices

The real estate industry in Maharashtra has welcomed the government’s decision to increase the floor space index (FSI)-free built-up area allocation for fitness, meditation, and recreational amenities from 2% to 4% of the total built-up area in residential and commercial buildings. This amendment to the Development Control and Promotion Regulations (DCPR)-2034 is expected to significantly enhance the quality of life for residents, particularly in redevelopment projects and large housing societies.

Clubhouses, yoga rooms, and other recreational spaces will now be exempt from the FSI limit, allowing developers to create larger and more comprehensive facilities. Hitesh Thakkar, Vice President of Naredco Maharashtra and Managing Director of Prem Group, a real estate company, emphasized the positive impact of this decision. “It is a good move by the Maharashtra government and will benefit homebuyers as well as existing residents of cooperative housing societies who will now be able to enjoy larger recreational areas for fitness and health,” Thakkar said.

The previous 2% allocation for FSI-free recreational space often proved inadequate for larger projects. For instance, in a project with a built-up area of one lakh square feet, only 2,000 square feet could be used for clubhouse and recreational facilities. With the revised regulation, this can now be increased to 4,000 square feet. This additional space can accommodate a variety of amenities, including yoga rooms, meditation centers, and indoor recreation areas.

Thakkar clarified that the primary beneficiaries of this policy are the residents, not the developers. “The builder does not gain additional saleable area from this provision. These utility and recreational spaces are being permitted free of FSI only for the benefit of residents,” he explained. Over the last few decades, redevelopment and higher FSI policies have increased residential density in Mumbai projects, making larger community amenities necessary. “Earlier, projects may have had one lakh square feet of construction, but with increased FSI, the same layouts can now go up to 1.5 lakh square feet or more. With more apartments and residents, the earlier recreational space norms had become inadequate,” he added.

Ramesh Prabhu, MahaSewa Chairman, also welcomed the government’s decision, highlighting its relevance to the changing profile of homebuyers and the increasing density in redevelopment projects. “It was a much-needed decision because in redevelopment projects, with the increase in the number of homes and population density, the existing amenities had become smaller and inadequate. With the increase in FSI allowance for such facilities, bigger amenities can now be constructed,” Prabhu said.

He noted that the younger generation of homebuyers is health-conscious and prefers projects with better amenities. “The younger generation is health-conscious and always prefers projects with better amenities. Therefore, this move was necessary,” Prabhu added.

The Maharashtra government recently approved amendments to Regulations 31(1)(xvii) and 37(28) of the DCPR-2034, allowing fitness centers, Yogalayas, meditation centers, and recreational activity spaces to qualify for FSI exemption up to 4% of the total built-up area. The revised provisions also extend to condominiums and commercial associations, and covered swimming pools forming part of fitness facilities can also be permitted within the prescribed cap.

This move is expected to enhance the overall appeal of residential and commercial projects, making them more attractive to potential buyers and residents. The real estate industry is optimistic that this decision will contribute to a healthier and more enjoyable living environment for the residents of Maharashtra.