Redevelopment
Gear up, we’re ready to discuss the most talked about subject in Mumbai – popularly known as Redevelopment!
As the name suggests, it means to replace old structures with new ones.
Listing below various types of areas that can undergo redevelopment for your reference:
1. Slums
2. Landlords or Pagdis
3. Dilapidated Buildings
4. Cluster Redevelopment – a few adjacent buildings joining hands to redevelop their properties
4. Co-op Societies
This is currently possible due to the change in the DCR, which now offers much higher FSI in the city.
FSI – Floor Space Index means how much one can construct on a plot.
FYI – The rules for the same differ for South Mumbai & Suburban Mumbai, depending on road width, open spaces within the plot and more.
Pro Tip: Please do not assume that your land is eligible for the highest available FSI in the area. It’s best to consult an architect to ascertain the same.
Getting back to topic…Are you wondering why this is a great concept? Firstly, it gives you the joy of living in a much better and bigger space than your current one. Secondly, nowadays new constructions use the latest technology available which means that stake holders enjoy the following:
1. Better Designed Apartments
2. Earthquake Resistant Structures
3. Modern Elevators
4. Green Environment-Friendly Buildings
5. Fire Compliant Structures
6. Security Systems
7. Adequate Parking
8. Piped Gas
9. Optic Fibre Connectivity
What more can you ask for?
Types of Redevelopment:
1. Self Redevelopment: As the name suggests, occupants can take it upon themselves to redevelop their spaces. This concept, without any iota of doubt, would ensure the entire profit either in the form of extra area or money after selling the extra area would remain with the society. Having said that, construction in Mumbai is an extremely complicated and complex subject which may seem easy on the surface, but is far from that in reality. It requires meticulous planning and execution at each level. Right from designing, getting approvals, organising funds, monitoring whether the right material is obtained and used during the entire construction period or not, requires constant attention. Getting numerous approvals right from inception till the end needs monumental patience, perseverance and also handling corruption along side. The society would need a group of honest, dedicated and knowledgeable people to handle these issues amongst various others.
Pro Tip: The probability of getting stuck due to some of the reasons mentioned above are very high.
2. Redevelopment through a Selected External Developer: In this case, legal processes should be followed with total transparency. Developers who have taken this upon themselves keep their share of profits from the venture and are also responsible to find solutions to all issues (as mentioned above) that come up. Besides that, a developer should also be responsible for the following:
- Paying rent for the entire period of construction
- Increased area based on available FSI
- A Corpus Fund: This a royalty paid to existing occupants to set off incremental property and maintenance taxes
- Developers also help in giving you good planning and amenities
- Uniform documentation for all occupants
Before we get onto the lengthy and cumbersome process of this topic, keep in mind that the decision to self develop or to go ahead with an external agency is entirely your prerogative. It’s best to go ahead with the option that works for you.
See you next week. Until then, please feel free to share your feedback and opinions in the comments below.
