Track2Realty: Western suburbs of Mumbai are set for a facelift through redevelopment post the new Development Control Rule (DCR). Ravi Sinha speaks to Lalit Kumar Jain, CMD, Kumar Urban Development and CREDAI President to understand whether it would add more pressure on the existing crumbling infrastructure of the suburbs. Excerpts of the interview:
Track2Realty: How do you see the challenges of redevelopment in the western suburbs of Mumbai?
Lalit Kumar Jain: Redevelopment activities are taking place on a large scale in the western suburbs of Mumbai such as Andheri, Jogeshwari, Goregaon, etc. With limited land resources, many developers based in the suburbs are opting for redevelopment of existing projects. Both residential and commercial real estate developers are increasingly gearing up towards new redevelopment schemes. Redevelopment is no more about slum development. Redevelopment is a huge market, where a developer has to work with cooperative housing societies that can use higher FSI because of the new development rules. A large number of reputed developers in the western suburbs have already gotten into redevelopment of projects.
Track2Realty: Following the DCR, focus seems to have shifted on redevelopment in Mumbai. The question still stands-will it increase substantial supply or lead to price correction?
Lalit Kumar Jain: Redevelopment of a housing society calls for building a high-storey building that houses more residents than those housed previously. Obviously, there will be more supply of residential real estate. Redevelopment is beneficial to both the home buyers as well as the developer community. Home buyers can expect bigger houses and developers can sell the extra flats that they build in a redeveloped building. Mumbai is a city where the demand for housing will always be more than supply mainly due to the sheer size of the population in the city. So, although the supply of residential real estate will increase, it may not necessarily lead to price corrections.
Track2Realty: What is the best sustainable model of redevelopment in the western suburbs according to you?
Lalit Kumar Jain: The correct assessment of compensation to residents calculating costs due to fungible area and TDR is the key. However government must promote redevelopment for safer and healthy living of Mumbaikars
Track2Realty: Don’t you think redevelopment will add to more pressure on overall infra needs?
Lalit Kumar Jain: To some extent, yes, redevelopment will add more pressure on the existing infrastructure. Mumbai is bursting at its seams, and its infrastructure facilities are outdated. Draining systems built in the times of the British era are still prevalent in the city. There is a dire need to overhaul this system. Also, more spaces for children such as parks, play grounds, etc. are needed. Most redevelopment projects encompass amenities such as parks, play grounds, etc. Having said that, infrastructure definitely needs to be boosted in order to make redevelopment a success.
Track2Realty: Western suburbs need infra push along with the redevelopment. How to balance the two challenges?
Lalit Kumar Jain: Suburban Mumbai has a density of 20,925 persons per sq. km which is twice as many people as that in New York (10,630 persons per sq km). Currently, the infrastructure in the western suburbs is woefully inadequate. For redevelopment to be effective, it is imperative to boost the infrastructure in the region. Better mode of transport, improved sanitary conditions, etc. is the need of the hour. Some prominent infrastructure initiatives have been taken including the World Bank supported Mumbai Urban Transport Project, Mass Rapid Transit systems like Metro Rail Project and Mono rail. However, there is still scope for improvement in this area.
