Should You Buy an Old Mumbai Apartment Set for Redevelopment?

What actually happened?

Property consultants highlight that redevelopment of old buildings in cities like Mumbai and Pune can be a financially sound move. These projects are driven by the need for more housing in land-scarce areas.

The process involves demolishing old structures and constructing new, often taller, buildings, which can benefit both existing residents and new buyers.

What it means for buyers

For buyers, purchasing an apartment in an old building set for redevelopment offers a chance to get a property in a prime location at a lower cost. Post-redevelopment, the value can appreciate significantly.

However, the risks include construction delays, legal disputes, and the builder's financial stability. Buyers must ensure the project is RERA-compliant and check the builder's past projects.

• Lower initial cost compared to new builds.
• Potential for higher returns after redevelopment.
• Risks of delays and legal issues.
• Need for thorough builder verification.

What to watch next

Buyers should monitor RERA updates and builder announcements for redevelopment projects. It's also wise to consult local real estate experts for advice on specific localities.

Keep an eye on government policies that might affect redevelopment timelines or incentives, especially in Maharashtra.

• Check RERA website for project status.
• Consult local brokers for insider info.
• Watch for policy changes in Maharashtra.