How BMC Just Up-'Lifted' Mumbai Real Estate By An Elevator Move

As they could not afford little clarity over the matter, real estate developers in Mumbai so far built tall structures that have elevators till the top floor. To get to the terraces of such structures, one has to take the stairs.

This is about to change.

According to an official release, the Brihanmumbai Municipal Corporation (BMC) has decided to allow developers to install lifts up to the terraces of buildings. Old structures in the city will also be able to incorporate this change.

"This will be applicable to all old and new buildings, and is permissible free of FSI (floor space index). If a builder or society wants an existing building to avail of the facility, he only needs to inform the building proposal department," a BMC official said.

How does this help Mumbai real estate?

*Those who like to have a room with a view invest in units lying at the top-most floor – the view is the best from the top floor. You also have to pay a premium if you want to enjoy the luxury of a terrace in a big city such as Mumbai. This is precisely why buying a home on the top floor is comparatively costlier even in general; in Mumbai, it is a different story altogether. It is relevant to mention here that Mumbai is among the most expensive real estate markets in the world.

The average rate of property in the city, according to data available with PropTiger.com, currently stands at Rs 8,700 per square foot.

Now arises the point relevant to our discussion here.

Those who buy a property that has a terrace attached must have an easy access to the said space. While taking a flight of stairs may not seem difficult at all when we are fit as fiddle, the job may start seeming gargantuan in our old age. In such a case, you terrace would lie unused without serving any purpose, collecting dust.

"When purchasing a flat, the buyer not only pays for the flat but also for the undivided right, title and interest in the common space of the society. This is a welcome move," says advocate Dharmin Sampat, treasurer of Co-operative Societies Residents Users and Welfare Association.

There is another noteworthy point here.

In case you are selling your top-floor property confidently pitching the terrace as its unique-selling point, your offer would look attractive to only young homebuyers. Middle-aged and old couples, for whom the criterion for choosing a property is different (they factor in their age and all issues that come along with an advanced age), may not see much good in your offer. They in all likelihood would be unwilling to pay a premium for a property a big part of which would remain unused. When your building offers elevators that connect the terrace also, these two set of buyers will be equally interested in your offer.