Track2Realty Exclusive: A large section of realty players categorically say that the redevelopment process may be a step in the right direction, it is yet not going to change the demand-supply dynamics, nor will it bring down the prices.
According to Diipesh Bhagtani, Executive Director of Jaycee Homes, the demand in the locality is huge and government’s conservative outlook on additional FSI added with developers’ cost escalation only means not as substantial gain as is the potential.
“Unless infrastructure and connectivity improves leading to a holistic growth, I don’t see any substantial change in the demand & supply dynamics. After paying a premium of about 20 per cent to the municipal body, and with limited FSI increase, the developer is not in a position to pass on any price benefit to the consumers. Even keeping in mind the demand, additional supply is too restrictive to be sen as surplus inventory,” says Bhagtani.
Amit Nagpal, Director of Nagpal Developers demands the government to ensure that the developers get right opportunity based on their past projects and right redevelopment track record.
He says the scope of redevelopment is so much in cities that even some of the bigger developers who had earlier avoided to get into this segment, are now focussing on redevelopment.
“Actually, everyone in Mumbai is looking for redevelopment options. Market has been stagnant so far due to policies coming in the way of redevelopment projects. There is always good demand and no stock available in prime localities. Of course, the dynamics of mass housing project is different and people often confuse it with the inventory coming out of redevelopment. Many NRIs from Dubai and other parts of the world have approached us for prime locations of Mumbai that can offer new flats post redevelopment. Demand is more in the premium segment, depending on the locality,” says Nagpal.
….to be continued
