The sector is in flux due to the changing economic scenario, land scarcity, and soaring real-estate prices in metro cities. Rows of old, dilapidated structures line the city centres, which is a characteristic of cities. Redevelopment is an excellent solution that addresses both supply and demand. Investors see redevelopment projects as lucrative opportunities as old societies give way to new ones. Redevelopments keep property rates from rising because they address the growing supply curve.
Cities’ redevelopment projects are appropriate for housing societies whose construction lifespan is nearing its end and is beyond repair. The redevelopment gives the dilapidated housing societies a new lease on life. This is more than just a new luxurious home for investors; it also expands the possibilities for a higher Floor Area Ratio (FAR).
For a long time, redevelopment has been a popular trend in Western countries. It has also been catching up in India in recent years. Land development is a pressing need due to the large population dispersed throughout the country and the stagnation of property values in central areas. Redevelopment has been implemented in old buildings and apartment complexes by well-known developers. Redevelopment projects will be implemented across the country in the coming years to meet the demand.
The growing population drives up demand for both residential and commercial properties. Residents benefit from redevelopment because they get a new home with more space at no additional cost, as well as a plethora of basic amenities such as high-end security systems and parking lots that are lacking in older complexes. A structure built in the 1970s or before the 1970s is likely to go through various stages of repair, raising safety concerns for its occupants. Such structures, on the other hand, should be carefully examined and redeveloped. Furthermore, redevelopment is more long-term than repairs. Repairing a building that is 25 years old will only add three or four years to its life. It is structurally and economically unworkable.
According to a report by Knight Frank, the real estate sector’s contribution to the country’s GDP will increase by 10% by 2030, reaching $1 trillion. In the residential sector, momentum is expected to continue in 2022 as homebuyers seek larger spaces, better amenities, and more affordable prices. Redevelopment in Mumbai had slowed at the start of the pandemic, but that is expected to change now that the sector is starting to recover.
One of the most important factors to consider in redevelopment is the reputation of the builder. It is recommended that investors thoroughly research and comprehend the builder’s previous projects. One can also predict how their redevelopment projects will turn out. Before making a purchase decision, investors should understand the different types of redevelopment clusters; there are three common redevelopment models: slum redevelopment, cluster redevelopment, and redevelopment of four, five, or even one old housing society. For buyers, old societies with a manageable number of owners make it easier to reach a consensus with the builder, streamlining the process. This ensures that there are no other problems and that the project stays on track.
The majority of projects spring up in the suburbs when it comes to amenities. Living in the city centre is essential for those who need to maintain a work-life balance. With redevelopment projects, one can own a luxurious apartment in one of Mumbai’s most desirable areas. Because these new redevelopment projects are planned, they can include a wide range of modern amenities to meet the needs of investors. Because redevelopment allows for the addition of more residential units to society, prospective homebuyers can easily select homes in desirable areas.
Living in a community fosters a sense of belonging while also providing better living assistance. Redevelopment projects give investors a complete picture of the social situation, which is especially important for families with elderly and children. Redevelopment projects that help affirm these values are seen as a plus by homeowners who prioritise support, safety, and security above all else. Furthermore, being close to one’s loved ones is an important consideration.