Sunteck Realty Secures Rs 1,100-Crore Redevelopment Project in Mumbai's Andheri
Sunteck Realty has secured the rights to redevelop a 2.5-acre housing society in Andheri East, Mumbai, with an expected revenue potential of Rs 1,100 crore. The project, originally established by LIC employees, has a development potential of over 1 million sq ft.
Sunteck RealtyHousing Society RedevelopmentMumbai Property MarketReal Estate Projects MumbaiRedevelopment ProjectReal Estate MumbaiMay 29, 2025
The society comprises a total of 11 buildings, which were constructed in 1968. All the buildings were built on an ownership basis by LIC staff. The project is expected to hold a total construction and development potential of over 1 million sq ft.
The company is currently working on approvals and the construction is expected to commence following the formal handover of the site by the society. The completion of the project is targeted within 36 to 48 months thereafter. The total investment for the project is expected to be around Rs 750 crore, including construction costs, floorspace index premium, rentals, and corpus to the society. Sunteck Realty is likely to fund the entire development through internal accruals.
The company has recently signed the 79 A agreement with the housing society and is currently working on the further planning of the project. An agreement with the housing society under Section 79 A of the Maharashtra Co-operative Societies Act, 1960, requires majority consent of members before finalizing redevelopment plans. This structured process emphasizes transparency, member rights, and legal protection.
Real estate projects involving the redevelopment of old housing societies and rehabilitation are the mainstay of the Mumbai region’s property market. The land-starved city and its peripheral areas have few vacant land parcels. In 2023, the government of Maharashtra stated that a member of a housing society that undergoes redevelopment need not pay stamp duty on the allotted permanent accommodation as part of the project.
Following this, the member of the housing society undergoing redevelopment is expected to pay only Rs 100 as stamp duty, while the principal agreement between the developer and the housing society will be charged as per the conveyance. The state government’s decision and ongoing buoyancy in the property market have been playing a key role in pushing the redevelopment of many old and dilapidated housing societies across key cities in the state.
Frequently Asked Questions
What is the expected revenue potential of the redevelopment project?
The expected revenue potential of the redevelopment project is around Rs 1,100 crore.
How many buildings does the housing society comprise?
The housing society comprises a total of 11 buildings, which were constructed in 1968.
What is the total development potential of the project?
The project has a total development potential of over 1 million sq ft, including 275,000 sq ft of free sale component.
How is the project expected to be funded?
The total investment for the project is expected to be around Rs 750 crore, and Sunteck Realty is likely to fund the entire development through internal accruals.
What is the significance of the 79 A agreement under the Maharashtra Co-operative Societies Act?
The 79 A agreement under the Maharashtra Co-operative Societies Act, 1960, requires majority consent of members before finalizing redevelopment plans, ensuring transparency, member rights, and legal protection.
Tags:
Related News Articles
Luxury Mumbai Real Estate: The Sky's the Limit
Mumbai's luxury real estate market continues its upward swing with high-end transactions
The Future of Living: How Technology is Revolutionizing Real Estate and Modern Homes
Explore the cutting-edge technologies transforming the real estate industry and redefining the concept of modern homes.
Shahid Kapoor and Mira Rajput's Rs 59 Crore Sea-Facing Apartment in Mumbai
Get a glimpse of Shahid Kapoor and Mira Rajput's luxurious sea-facing apartment in Mumbai's Three Sixty West complex
Godrej Properties Achieves Unprecedented Success in Bengaluru with Rs 3,150 Crore Sales
Godrej Properties Ltd has sold over 2,000 homes worth over Rs 3,150 crore in its project, Godrej Woodscapes, located at Whitefield-Budigere Cross in Bengaluru, marking a major milestone for the company.
Maharashtra Approves Rs.1.40 Bn for Katraj-Kondhwa Road Land Acquisition
Maharashtra approves ₹1.40 Bn for Katraj-Kondhwa Road land acquisition for real estate development.
Aditya Birla Real Estate: Strategic Land Acquisition in Mumbai
Aditya Birla Real Estate has made a significant land purchase from Hindalco Industries for ₹537.42 crore in Mumbai. This strategic move is expected to strengthen the company’s portfolio and contribute to future growth.