Redevelopment recreates Mumbai’s blueprint: Vibe Realty sees tremendous potential
What You Need to Know
- 2 February, 2022
Redevelopment of housing societies is now becoming a subject of great interest to both the societies and the developers. The shifting economic scenario, scarcity of land, and skyrocketing real-estate prices in Mumbai have resulted in flux in the realty sector.
Real estate projects involving redevelopment and rehabilitation are the cornerstone of Mumbai’s property market, as the city has only a few vacant land parcels. Currently, around 13,000 properties in the Mumbai city and 19,000 in the Mumbai suburbs are awaiting redevelopment. It would be an ample business opportunity for Developers to establish their brand and execution record in this untapped domain.
With Mumbai’s real estate prices touching a new high, residents of old buildings are realizing the immense value of their property and unlocking this value through redevelopment. For the society, it is a long-term solution to its old structures that need severe refurbishing. For the developer, it is a cost-effective way to construct residential/retail premises by utilizing the unused potential i.e., the Floor Space Index – Transferable Development Rights with gradual capital investments.
Redevelopment post-2019
In the past, there have been irregularities and illegalities in redevelopment by the builders, some unethical managing committee members, and violations of regulations. Several complaints from Housing Societies and Housing Federations included non-transparency in redevelopment and tendering process with society members, among others.
Considering the above nature of complaints received in the matter of redevelopment, the government modified guidelines in this regard. The Government Directives were modified under Section 79(a) of the Maharashtra Co-operative Societies Act, 1960 w.e.f 4th July, 2019. Some of the highlights are:
The approval of a minimum 51% of the total society membership strength shall be required to make the preliminary decision as to whether the society should proceed with the redevelopment
To appoint an Architect / Project Management Consultant from the Panel of the Govt. / Local Authority for the redevelopment-related work
It is essential that minimum 3 tenders should be received and publish the same on the Notice Board of the society and its website
A Special General Meeting of the society shall be convened for the selection of a developer. Shortlisted developers / their associates should have a minimum of one project registered with the MahaRERA.
The above directives were issued for more transparency in the interest of both participating Developer and Society members of Co-operative Housing societies.
Vibe sees the potential.
In this highly fragmented market, there aren’t many companies focusing on redevelopment projects to build new-age homes. The hour at hand calls for undertaking projects to cater to this flourishing segment and economic opportunities.
Vibe Realty stands to recognize itself in the industry as an emerging developer in Mumbai. Our specialized teams under the ‘Redevelopment’ wing have proven experience in the redevelopment of all scales of residential projects. We thoughtfully plan and design and follow legal adherence and efficient processes until project handover.
We have already submitted 8-10 tenders and few of them are at advanced stage of selection and closure. Hopefully, 2-3 projects will be signed by the end of the current calendar year. Further to strengthen the overall process, the financial closure has been backed by renowned financial institution.