REDEVELOPMENT POTENTIAL

Hemal Jain details the benefits of redevelopment and explains why it is vital, towards meeting the housing demand of a city like Mumbai

Redevelopment, which refers to the process of reconstruction of residential/ commercial premises, by demolishing an existing structure and constructing a new structure in its place, has emerged as a useful option for developers. Redevelopment is done by utilising the potential of the land, by exploiting additional TDR and FSI, as specified under the Development Control Regulations of the Municipal Corporation of Greater Mumbai (MCGM).
Why is redevelopment required?
Redevelopment is a continuous process of urban renewal. Indian cities have grown enormously and as a result, there is a dearth of land in the central areas. Redevelopment opens new
avenues for development and also gives an opportunity to build complexes that cater to modern lifestyles. However, whether a developer builds a luxury project or something else, depends upon the location. For instance, locations like Worli or Cumballa Hill in south Mumbai, which have scope for redevelopment of slums or upscale buildings, are more likely to be venues for luxury housing projects. On the other hand, redevelopment in the suburbs will depend on the location's profile. The only other alternative, for accommodating the increasing demand for housing at all levels, is through horizontal growth. However, this will require vastly improved transport facilities and civic infrastructure.
    Another scenario, where redevelopment can be an ideal solution, is when a society is in dire need of extensive repairs and at the same time, does not have the necessary funds to carry out those repairs. On one hand, such societies may not have the resources and expertise, to handle the repairs on their own and on the other hand, the families of the members may have expanded, thereby requiring more space.
    Old buildings also have other drawbacks such as lack of security and maintenance serv ices, absence of common facilities like gymna sium and society office, unavailability of prop er playing area for children in the compound leakage problems, absence of elevators, poor in terior planning of rooms and low resale value due to the poor condition of the buildings.
    Benefits of redevelopment, to developers
    and tenants
    Builders/ developers, who opt to purchase land and develop the same, incur huge stamp duty cost, vis-à-vis transfer of the land. Howev er, when it comes to redevelopment of old buildings, the stamp duty is reduced by a sig nificant extent and this acts as a major benefit for developers. Tenants too get several benefits like hassle-free execution, extra carpet area, in crease in the flat's value and in most cases, al ternate accommodation/ reimbursement or rent compensation, for the period during which the building is under construction.
    The need for redevelopment, in Mumbai
    There is huge potential for redevelopment, in Mumbai, due to the constraints on land availability, coupled with the mismatch between demand and supply of housing stock. On the other hand, there are thousands of ageing buildings where it may not be viable to carry out structural repairs. The only solution is to pull them down and reconstruct them. The problem of dilapidated buildings in the city of Mumbai is becoming more acute, with each passing year. Consequently, for a majority of the cities in India, redevelopment of old buildings becomes crucial.
    Nevertheless, redevelopment of housing societies is usually burdened with bitterness and complaints of highhandedness and corruption against the managing committee. With the mid-income segment today becoming a huge purchasing market, developers are moving towards redeveloping older structures into modern luxurious complexes with facilities like free parking, gardens and play areas. In the ultimate analysis, complete and timely delivery seems to be the most crucial factor, when it comes to redevelopment.
    (The writer is director, Neev Homes)

List of documents, required from the societies for redevelopment: Society registration certificate; Approved building plan Conveyance deed/ lease deed/ sale deed Copy of resolution documents/ papers/ deeds/ agreements, etc., whatsoever in nature, related to the society's plot Property card DP remark Extract of 6/12, 7/12 Search report and title certificate Index II NA order City survey plan Copy of IOD, commencement certificate, occupancy certificate, completion certificate.

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