Mumbai's biggest land owners prove that in a city where space is at a premium, there are vast tracts of land waiting to be developed
In a city where land is the most coveted acquisition and small apartments command the same price as a house on the French Riviera, it is surprising to see that Mumbai has large tracts of undeveloped land. Several public and private players are large landowners.
Maximum city: An aerial view of SoBo
A recent study by M/S Jones Lang LaSalle, a real estate service and investment management firm reveals that a major chunk of land is in the possession of private landowners and developers. This is followed by saltpan land.
Abhishek Kiran Gupta, head, Research and Real Estate Intelligence Service (REIS) said that data compiled by his team is based on information gleaned by technical experts from all possible land record sources, viz developers, government institutions like Mumbai Metropolitan Region Development Authority (MMRDA), revenue department, collectors office and others.
Private players
Gupta explained that private landowners including industrialists like Godrej and developers like Hiranandani have vast areas of property stretching across the Eastern Express highway and in Powai.
Another major land chunk is the saltpan land in Dahisar, Malvani, Pahadi, Mulund, Nahur, Kanjurmarg, Bhandup, Wadala, Turbhe, Mandale, Chembur, Ghatkopar and other areas.
Sweet is salty
According to senior officials attached to the state revenue department, around 5,442,50 acres of saltpan land are spread across these areas and is under the Ministry of Urban Development, Government of India. If the Centre approves a state government proposal, 5,422,50 acres of saltpan land would be available for redevelopment for private developers. The government though wants to use the saltpans to develop low-cost housing projects for rehabilitating slum dwellers, displaced by various infrastructure upgradation projects.
Gupta added that the third largest property owner is the Mumbai Port Trust, which has a whopping 1,859 acres of land spread throughout the Ports and entire Ballard Estate area.
Mills, not malls
While Mumbai literally changed character when mills shut down and a unique mill culture was wiped off the city's character map, research indicates that irrespective of most NTC mill lands being sold to private developers over time, they still have around 1,377 acres of land spread in pockets of central Mumbai-Parel, Mahalaxmi and other areas.
Land bank
Then, other major landowners are both the Central and State Government institutions like the Life Insurance Corporation of India (LIC), Income Tax offices and others. The Central Bureau of Investigation (CBI) has an open plot of 5,000 sq metres marked at Bandra Kurla Complex. The BEST, BMC and Dharavi slums are a major land bank for the state government.
Railway rocks
Data reveals that both the Central and Western Railway has huge, unused tracts of land in and around Railway premises, that can be developed subject to approval. The RLDA (Rail Land Development Authority) could exploit land in Mumbaiand use one-third of the money profits for projects in the city -- particularly the second phase of the Mumbai Urban Transport Projects (MUTP).
Action stations
According to the senior railway officials just two plots in Mumbai - CST and Bandra could fetch the Railways approximately Rs 5,000 crore that could be used to remodel Churchgate, Dadar, Kurla, Byculla, Bandra and Goregaon stations provided the state government agrees to give FSI to these plots, which could get money flowing. Besides the CST, Carnac Bunder has around 80,000 sq metre land and Bandra East has 45,000 sq metre open plots. Yet, Mumbaikars dreaming of redeveloped railway stations - bigger platforms, better access access to ticketing booths, smooth as silk access and spanking new exits and entrances need to hold those Utopian dreams.
Foreign flavour
"On the basis of these statistics, one can conclude that there is no scarcity of land in Mumbai for development. Yet, there are certain issues like the lands would have to be clear of title, they are not encroached upon and the development norms are clear and stated," said Gupta.
He was also optimistic about Foreign Direct Investors (FDI) looking forward to investing in the real estate market in Mumbai in the near future. Today, though, domestic funds are more active in the real estate industry than foreign funds. Also the real estate market is very strong towards residential projects than commercial ones. Though the developers expect FDIs to invest in commercial projects, FDIs are keener to invest in residential projects, which according to them are more profitable. They are following the wait and watch policy.
Port what?
A study carried out of KPMG in Mumbai Port Trust Land reveals that the Port of Mumbai has historically been the largest land owner in Mumbai city and at one point had owned about 1/8th of the island's area.
According to the report, the port's 1,860 acres of land are contiquous with the land of the city of Mumbai and has now become an integral part of Mumbai. With rapid urbanisation, development and industrial and commercial activities and spiralling population growth, Mumbai has been facing an acute shortage of land. In view of this, it is evident that real estate is one of the key assets of the Mumbai Port and care has to be taken to ensure that its land usage policy is carefully monitored in the future.
Reservation plans
Substantial portions of the land also fall under the reservations planned by the Municipal Corporation under its development plan. As per the reservations scheme, land earmarked for such a purpose is to be used for development of recreation grounds, parks and other public amenities.
City nitty-gritty
The Port has encouraged improvement to the city infrastructure and has played a constructive role by participating in various infrastructure projects and will ensure smooth evacuation from the Port.
Among others, the Mumbai Port has decided to contribute 50 per cent of Wadala Truck Terminus-Mahul Link Road, Mumbai Port has approved in principle, the Mumbai Trans Harbour Link with concessional lease rents of 25 per cent of land and water area.
Recently the port has taken a decision to invest in the Wadala-Kurla dedicated freight corridor, bearing the entire cost of the project. Mumbai Port has agreed to consider MMRDA's proposal for the elevated section of the Eastern Island Freeway through Mumbai Ports estate.
These projects are directly aimed at segregating Port traffic from city traffic and would ease pressure on the city's infrastructure, both for road and rail.
Mumbai Port has played a very useful role in the promotion of the passenger water transport project of the Government of Maharashtra, both on the West and East side of the island city.
Mumbai banega Shanghai? No Singapore
Mumbai will be a world-class city by 2032 and a global city by 2052, states a concept plan for the city, prepared by the state government appointed Singapore-based consulting firm. According to the Project Manager, MTSU (Mumbai Transformation Support Unit), UPS Madan the government has appointed Surbana Consultants International, Singapore to get ready with a feasible report. The entire cost of the project is around Rs. 6.50 crore.
Apart from the MTSU officials the Urban Development Department, Mumbai Metropolitan Region Development Authority (MMRDA), and the Brihanmumbai Municipal Corporation (BMC) have been roped in.
City of Cities, which is the first of three options of the plan, involves creation of several thematic central business districts (CBDs) in the five growth centres around Mumbai. It also involves rejuvenating existing CBDs and de-congesting them.
The second option -- City of Connection -- is about connecting Navi Mumbai and Mumbai to create a land bank.
City of Islands, the third option, in the concept plan is about creating endless opportunities by connecting islands in the Mumbai Metropolitan Region (MMR). The concept plan also suggested reclamation of land at certain places in the MMR, including reploriferation of the Thane creek.
Locked land in Mumbai - Total potential supply of land
Note: Data comprises estimated numbers from non-govt sources
Source : http://www.mid-day.com/articles/
In a city where land is the most coveted acquisition and small apartments command the same price as a house on the French Riviera, it is surprising to see that Mumbai has large tracts of undeveloped land. Several public and private players are large landowners.
Maximum city: An aerial view of SoBo
A recent study by M/S Jones Lang LaSalle, a real estate service and investment management firm reveals that a major chunk of land is in the possession of private landowners and developers. This is followed by saltpan land.
Abhishek Kiran Gupta, head, Research and Real Estate Intelligence Service (REIS) said that data compiled by his team is based on information gleaned by technical experts from all possible land record sources, viz developers, government institutions like Mumbai Metropolitan Region Development Authority (MMRDA), revenue department, collectors office and others.
Private players
Gupta explained that private landowners including industrialists like Godrej and developers like Hiranandani have vast areas of property stretching across the Eastern Express highway and in Powai.
Another major land chunk is the saltpan land in Dahisar, Malvani, Pahadi, Mulund, Nahur, Kanjurmarg, Bhandup, Wadala, Turbhe, Mandale, Chembur, Ghatkopar and other areas.
Sweet is salty
According to senior officials attached to the state revenue department, around 5,442,50 acres of saltpan land are spread across these areas and is under the Ministry of Urban Development, Government of India. If the Centre approves a state government proposal, 5,422,50 acres of saltpan land would be available for redevelopment for private developers. The government though wants to use the saltpans to develop low-cost housing projects for rehabilitating slum dwellers, displaced by various infrastructure upgradation projects.
Gupta added that the third largest property owner is the Mumbai Port Trust, which has a whopping 1,859 acres of land spread throughout the Ports and entire Ballard Estate area.
Mills, not malls
While Mumbai literally changed character when mills shut down and a unique mill culture was wiped off the city's character map, research indicates that irrespective of most NTC mill lands being sold to private developers over time, they still have around 1,377 acres of land spread in pockets of central Mumbai-Parel, Mahalaxmi and other areas.
Land bank
Then, other major landowners are both the Central and State Government institutions like the Life Insurance Corporation of India (LIC), Income Tax offices and others. The Central Bureau of Investigation (CBI) has an open plot of 5,000 sq metres marked at Bandra Kurla Complex. The BEST, BMC and Dharavi slums are a major land bank for the state government.
Railway rocks
Data reveals that both the Central and Western Railway has huge, unused tracts of land in and around Railway premises, that can be developed subject to approval. The RLDA (Rail Land Development Authority) could exploit land in Mumbaiand use one-third of the money profits for projects in the city -- particularly the second phase of the Mumbai Urban Transport Projects (MUTP).
Action stations
According to the senior railway officials just two plots in Mumbai - CST and Bandra could fetch the Railways approximately Rs 5,000 crore that could be used to remodel Churchgate, Dadar, Kurla, Byculla, Bandra and Goregaon stations provided the state government agrees to give FSI to these plots, which could get money flowing. Besides the CST, Carnac Bunder has around 80,000 sq metre land and Bandra East has 45,000 sq metre open plots. Yet, Mumbaikars dreaming of redeveloped railway stations - bigger platforms, better access access to ticketing booths, smooth as silk access and spanking new exits and entrances need to hold those Utopian dreams.
Foreign flavour
"On the basis of these statistics, one can conclude that there is no scarcity of land in Mumbai for development. Yet, there are certain issues like the lands would have to be clear of title, they are not encroached upon and the development norms are clear and stated," said Gupta.
He was also optimistic about Foreign Direct Investors (FDI) looking forward to investing in the real estate market in Mumbai in the near future. Today, though, domestic funds are more active in the real estate industry than foreign funds. Also the real estate market is very strong towards residential projects than commercial ones. Though the developers expect FDIs to invest in commercial projects, FDIs are keener to invest in residential projects, which according to them are more profitable. They are following the wait and watch policy.
Port what?
A study carried out of KPMG in Mumbai Port Trust Land reveals that the Port of Mumbai has historically been the largest land owner in Mumbai city and at one point had owned about 1/8th of the island's area.
According to the report, the port's 1,860 acres of land are contiquous with the land of the city of Mumbai and has now become an integral part of Mumbai. With rapid urbanisation, development and industrial and commercial activities and spiralling population growth, Mumbai has been facing an acute shortage of land. In view of this, it is evident that real estate is one of the key assets of the Mumbai Port and care has to be taken to ensure that its land usage policy is carefully monitored in the future.
Reservation plans
Substantial portions of the land also fall under the reservations planned by the Municipal Corporation under its development plan. As per the reservations scheme, land earmarked for such a purpose is to be used for development of recreation grounds, parks and other public amenities.
City nitty-gritty
The Port has encouraged improvement to the city infrastructure and has played a constructive role by participating in various infrastructure projects and will ensure smooth evacuation from the Port.
Among others, the Mumbai Port has decided to contribute 50 per cent of Wadala Truck Terminus-Mahul Link Road, Mumbai Port has approved in principle, the Mumbai Trans Harbour Link with concessional lease rents of 25 per cent of land and water area.
Recently the port has taken a decision to invest in the Wadala-Kurla dedicated freight corridor, bearing the entire cost of the project. Mumbai Port has agreed to consider MMRDA's proposal for the elevated section of the Eastern Island Freeway through Mumbai Ports estate.
These projects are directly aimed at segregating Port traffic from city traffic and would ease pressure on the city's infrastructure, both for road and rail.
Mumbai Port has played a very useful role in the promotion of the passenger water transport project of the Government of Maharashtra, both on the West and East side of the island city.
Mumbai banega Shanghai? No Singapore
Mumbai will be a world-class city by 2032 and a global city by 2052, states a concept plan for the city, prepared by the state government appointed Singapore-based consulting firm. According to the Project Manager, MTSU (Mumbai Transformation Support Unit), UPS Madan the government has appointed Surbana Consultants International, Singapore to get ready with a feasible report. The entire cost of the project is around Rs. 6.50 crore.
Apart from the MTSU officials the Urban Development Department, Mumbai Metropolitan Region Development Authority (MMRDA), and the Brihanmumbai Municipal Corporation (BMC) have been roped in.
City of Cities, which is the first of three options of the plan, involves creation of several thematic central business districts (CBDs) in the five growth centres around Mumbai. It also involves rejuvenating existing CBDs and de-congesting them.
The second option -- City of Connection -- is about connecting Navi Mumbai and Mumbai to create a land bank.
City of Islands, the third option, in the concept plan is about creating endless opportunities by connecting islands in the Mumbai Metropolitan Region (MMR). The concept plan also suggested reclamation of land at certain places in the MMR, including reploriferation of the Thane creek.
Locked land in Mumbai - Total potential supply of land
| Authority/ Owners | Area (acres) | Area (acres) area in sq metres 1 acre = 4046 sq meters |
| Pvt Owners, developers | 6,500.00 | 2,62,99,000.00 |
| Salt pans | 2,177.00 | 88,08,142.00 |
| Mumbai Port Trust | 1,859.00 | 75,21,514.00 |
| National Textile Corporation (NTC) | 1,377.00 | 55,71,342.00 |
| Private mills | 459.13 | 18,57,639.98 |
| Maharashtra Govt | 200.00 | 8,09,200.00 |
| Central Govt | 114.71 | 4,64,116.66 |
| Western Railway | 45.71 | 1,84,942.66 |
| Central Railway | 40.03 | 1,61,961.38 |
| Total | 12,772.58 | 5,16,77,858.66 |
| Type | Area in acres |
| Port and Ports operation area | 485.56 |
| Land under infrastructure (roads) | 232.55 |
| Mumbai Port Trust staff quarters, railways, hospital and dispensary | 273.81 |
| Estate lettings | 733.06 |
| Vacant land | 64.86 |
| Estate in Titwala | 70.15 |
| Total | 1860.01 |
Source : http://www.mid-day.com/articles/
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