Real estate major Hiranandani Group has set its sights on Mumbai’s redevelopment segment, signing up two housing societies and closing in on a third, according to people familiar with the matter.
The two projects, located in Bandra and Versova, have a total saleable area of around 2 lakh square feet, sources added.
"Two societies have been signed up till now, and those projects are expected to be launched in the next few weeks, once all approvals are secured. The third project is also expected to be signed soon. In all, the Group is in talks with seven other societies, although it is unclear whether all seven will be signed, and the decision will be based on the viability of the projects," said one of the sources cited above.
The societies the company is in talks with are spread across most parts of the city, including the island city and both the eastern and western suburbs, according to sources.
Hiranandani Group, which is largely known for its large-scale township projects in Mumbai, is also executing a slum rehabilitation project in Vikhroli, having taken it over from another developer. Operationally, the company has spun off redevelopment into its own vertical within the organisation, to identify projects and gauge their viability.
Moneycontrol has written to the Hiranandani Group for comment on the redevelopment move, and the report will be updated once a response is received.
Other projects
The Niranjan Hiranandani-led group has partnered with other developers for the Vista project at Oshiwara, Andheri (West), where the company is acting as the consultant developer under the Eleva brand. That project has a saleable area of around 3 lakh square feet.
Recently, the group partnered with Pune's Krisala Developers and luxury resort operators Della, for a 105-acre township in western Pune's Hinjawadi, signalling its willingness to work with partners on projects. The Group has around 2,000 acres of land across various cities, including Panvel, Pune, Chennai, and some leisure and holiday destinations. Despite the move towards redevelopment projects, the group's focus is expected to be on township projects, according to market sources.
"Hiranandani Group prefers to operate in the township segment, where it can control all development aspects, including the amenities, retail, and office projects, besides homes. The redevelopment projects are primarily opportunistic in nature, with the locations being promising in terms of revenue," said a Mumbai-based real estate observer.
Redevelopment boom
The Hiranandani Group's entry marks an increasing number of large developers entering the redevelopment segment, especially in southern Mumbai and the western suburbs.
Due to new development control rules, the restating of land values for legacy housing societies, and rising home prices, homeowners and developers alike have been keen to redevelop buildings into taller structures with larger homes.
The opportunity serves as a win-win for both existing residents, who get larger and better-quality homes, and developers gain a large free-sale component, often in the premium and luxury segment, which carry better realisations.
Almost all major listed and large developers, both in Mumbai and elsewhere — including Macrotech Developers (Lodha Group), Godrej Properties, Rustomjee, Prestige Estates, Puravankara, Ajmera Realty, Wadhwa Group, and Runwal Realty — have latched on to the Rs 3 lakh crore opportunity and remain in talks with various societies.
While the south Mumbai market has traditionally led the redevelopment While the South Mumbai market has traditionally led redevelopment, infrastructure development in the western suburbs — from Bandra to Borivali — has made these markets attractive to developers.
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