FAQs on redevelopment projects in Mumbai

Response by Diipesh Bhagtani, Executive Director, Jaycee Homes

Q. How do you see the challenges of redevelopment in the western suburbs of Mumbai?

A. The western suburbs of Mumbai consist of many old buildings and bungalows that are being redeveloped. With land parcels for development in the city reaching saturation point, developers are looking at redevelopment in Mumbai. In western suburbs, starting from Bandra to Borivali there are many old structures that need attention. These buildings are engulfed by new towers that have come up in recent times. These old structures therefore need Redevelopment. If these buildings are ignored, they will not be able to withstand the environmental pressures with towers looming around them. Redevelopment can be a lengthy and risky process as it requires consent of 70% of the society members. Members sometimes do not give their consent for the process of redevelopment easily. This can delay the project for a long time. Also the procedures for getting permissions is lengthy, this delays the project further. One legal proceeding and the whole project suffers. It is advisable that the differences are solved amicably rather than legal rout.  This is one of the major challenges of redevelopment that developers are facing nowadays.

Q. 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?

A. Redevelopment is the only solution if Mumbai is to develop into an international city. The new DCR rules allow for higher FSI and have attracted a large number of reputed developers into this stream of development. Redevelopment will increase the housing stock in the western suburbs. Price stabilization will only come with faster approval and better infrastructure.

Q. What is the best sustainable model of redevelopment in the western suburbs according to you?

A. The model of redevelopment in western suburbs differs from society to society depending on the location and the area available for development. The model is customized based on these and many other criteria. Most of the projects today are sustainable projects where raw materials and fittings are used as per green building norms. So there is no such one building but many redeveloped buildings which are either complete or awaiting completion that follow sustainability model.  

Q. Don't you think redevelopment will add to more pressure on overall infra needs?

A. No, according to me, it will not add to the pressure on overall infra needs as redevelopment only houses existing people in a proper and planned manner. People usually relocate themselves rather than adding to the pressure of overall infra need. Redevelopment is not just about changing the structure but improvement in lifestyle by living better, planned, systematic life and optimum utilization of infrastructure that benefits all. 

Q. Western suburbs need infra push along with the redevelopment. How to balance the two challenges?

A. There is a dire need for better infrastructure for the city of Mumbai overall. Though there is an effort being seen in eastern suburbs and Navi Mumbai in developing infrastructure, western suburbs is lagging behind as compared to fast growing population there. Development of real estate sector and infrastructure go hand in hand. The government is implementing a slew of infra projects, and once completed these will help in development of the region in a major way. In western suburbs the development is happening faster than infrastructure. Projects though have started are taking a long time to complete. This slow pace of infrastructural progress is being overtaken by increasing population that is shifting to western suburbs.

Q. Do you think a comprehensive cluster redevelopment can be possible in the western suburbs with equal focus on housing supply and infra needs?

A. For cluster development the society or a group of society has to be in the same premises or in vicinity. For cluster redevelopment, an area comprising of many buildings rather than individual buildings are redeveloped. Cluster development in the western suburbs may not be feasible due to want of space but can be done in phase.

There is a lot of load on the developer to arrange for finance and the consents of the society members in a large project. It’s a tricky and difficult proposition but it is possible.