Track2Realty Exclusive: What are the challenges for redevelopment of a project in the urban centres? Ram Makhecha, Director, Vakratunda Group believes 80 per cent of the buildings in a city like Mumbai are dilapidated. Most of the other 20 per cent new buildings are better because that got constructed under the redevelopment scheme in recent years.
The boom in redevelopment will definitely change the face of urban cities. It will provide developers the space to develop and sell flats in the areas which were otherwise impossible and will enable the tenants live a better life by providing them modern amenities, more space and better lifestyle.
“Convincing the tenants about the need for redevelopment and meeting their demands in terms of additional area is a major challenge. Getting project approvals from authorities, developing the project keeping in mind the rules and regulations along with looking at tenants’ demands and also maintaining profitability, developing the project keeping in mind existing infrastructure facilities like drainage and sewage, the broadness of the road to handle additional car traffic, the water supply etc. are many a times more challenging than what it appears,” says Makhecha.
Shekhar Tolani, Director of Saheb Realty asks if space starved cities like HongKong and Singapore can be world class, why not Mumbai. According to him the island city of Mumbai has utilised all land, and with least green patches redevelopment is the only logical way forward. Redevelopment can also improve the inventory for quality human living. Will more supply also bring the prices down in urban centres?
“It may not bring down prices because in the overall demand-supply dynamics the rate at which people are flocking to cities, demand will always outpace supply. Moreover, price is a factor that is determined by many other things, supply increase just being one. But with sprawling slums across the major property markets of metro cities, some micro markets can take a lead in beautifying the city. Redevelopment according to me is the way ahead across the country, most notably in Mumbai, Delhi, Bangalore, Kolkata, Pune. Just see how the sprawling development on the outskirts of Pune is demanding for a holistic solution within the periphery of the city,” says Tolani.
…..to be continued
