The financialisation of floor space, Mumbai 1880–2015

Abstract

This paper traces the financialisation of policy instruments regulating floor space, namely, building height restrictions in Mumbai from 1880 to 2015. It describes and explains the shift from prescriptive regulation to hybrid market-based incentive. Drawing on original archival research and interviews with 80 policy experts, findings show that height restrictions shifted from ad hoc rules, to prescribed heights, to floor space index, and finally to market-based air rights. Paradoxically, the local state has used financialised floor space as an incentive to achieve social goals such as slum redevelopment, while the policy remains controversial and beset by conflict. The state has played a key role in financialising floor space, in the process creating a hybrid instrument with multiple constituencies. The conclusion explores how a history of building regulations can advance comparative urbanism.