Redevelopment projects gaining pace in Mumbai
Mumbai: Redevelopment seems to be a logical solution to meet the housing need of Mumbai city. This solution can also become a boon to improve physical and civic infrastructure of the city.
The new DCR rules allows FSI of 4 for all cluster redevelopment in the specific areas of MMR (Mumbai Metropolitan Region), which is way higher to the present FSI of 1.33 in South Mumbai and 1 for suburban areas. This means that in the areas such as Thane, Kalyan-Dombivli, Ulhasnagar, Navi Mumbai, Vasai-Virar and Mira-Bhayander, for a cluster redevelopment project the Developer will be able to build four times than in the distant suburbs.
There are tremendous opportunities for redevelopment spaces in Mumbai. According to a study, in the MMR, there are around twenty thousand buildings and housing colonies, which are in the process of being demolished and redeveloped in to high-rise structures. Support from the government and low or equal cost of acquiring redevelopment projects in comparison to the cost of acquiring open land in the suburban areas, are the two major points of attraction for the builders.
Early this year, Godrej properties have announced their plans of redeveloping two projects, one in Malad and other in Chembur. Other than Godrej properties, builders like Oberoi Realty, Unitech, Akruti City, Azure Capital Advisors, Red Fort Capital, Kotak Realty Fund are among those who have already raised money are in the process of raising money for the redevelopment projects. With the increase in FSI, Andheri is experiencing a sudden increase in redevelopment projects. New Andheri CHS Ltd (Tirath Apartments), Manish Mahal CHS and Oscar Jyoti CHS are some of the residential complexes up for the redevelopment in Andheri West.
Moreover, private equity funds are also buying the idea of investing in redevelopment projects in comparison to the fresh launches in the suburban areas. The much higher returns of up to 45% in the redevelopment project in comparison to the 25 % in the project level and established demand of residential property in these well-developed areas is the main reason behind this.
A buyer must do a background check for the developer and it will be better if the builder already has a record of accomplishment in executing redeveloped projects. For an investor buying a redevelopment project in the pre-launch stage will give more returns, but for an end user, buying a project after getting all the approvals is more advisable.
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Image courtesy of Construction Site At Twilight FreeDigitalPhotos.net
A buyer must do a background check for the developer and it will be better if the builder already has a record of accomplishment in executing redeveloped projects. For an investor buying a redevelopme, Akruti City, Andheri East, Andheri West, Azure Capital Advisors, but for an end user, buying a project after getting all the approvals is more advisable. Oberoi Realty, Godrej Properties, Kalyan-Dombivli, Kotak Realty Fund, Manish Mahal CHS, Navi Mumbai, New Andheri CHS Ltd (Tirath Apartments), new DCR rules, Oberoi Realty, Oscar Jyoti CHS, Red Fort Capital, Thane, Ulhasnagar, Unitech, Vasai-Virar and Mira-Bhayander
