Revitalizing Suburbs: Developers Transform Old Housing Societies with Redevelopment
Real estate firms are offering lucrative incentives to homeowners in older, low-rise housing societies, leading to a significant transformation in suburban areas. From chawls to modern high-rises, the change is bringing newfound prosperity to residents.
Real EstateRedevelopmentHomeownersMumbaiChawlsReal Estate NewsNov 18, 2024
Cut to three years later, and the building has been redeveloped by a private real estate firm into a 24-storey property. Existing tenants like Chotalia have been provided with a 440 square foot apartment, parking space, and a substantial amount from the corpus provided by the developer to the management committee of the housing society.
Frequently Asked Questions
What are the key incentives offered by developers for redevelopment projects?
Developers often offer incentives such as larger apartment sizes, more than one apartment, a corpus for the housing society's management committee, transit rent, relocation charges, and other ancillary expenses.
How has the floor space index in redevelopment schemes impacted the market?
The development control and promotion rules in Mumbai allow for a floor space index of up to 5.0 in some redevelopment schemes. This has made it attractive for developers to invest in the market, leading to a potential of Rs 3 lakh crore.
Which areas in Mumbai are seeing the most significant changes due to redevelopment?
Areas such as Bandra, Juhu, Santacruz, Vile Parle, Andheri, and Borivali are seeing the most significant changes. These were previously working-class 'bedroom' communities and are now transforming into modern, high-demand neighborhoods.
Why are developers preferring the 'asset-light' model for redevelopment?
The 'asset-light' model allows developers to avoid large expenditures on land purchases, which can be difficult to finance. Private equity firms are willing to fund the initial statutory payments phase of projects, making it a more feasible and cost-effective approach.
What is the current trend in the launch of new projects in Mumbai?
Currently, every third launch in Mumbai is a redevelopment project. This trend has been driven by the high potential and demand in the redevelopment market, especially in the suburbs where land prices are rising.
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