Construction Industry News
In the silk stocking enclaves of southern Mumbai such as Malabar Hill, Walkeshwar, Nepean Sea Road and Altamount Road, redevelopment fever has now engulfed some of the top housing associations.
These are luxury areas where new apartments can cost more than Rs 1 lakh per square foot. Many of the city's A-list developers are also chasing these associations, scrambling to submit their bids for lucrative redevelopment projects.
Numerous luxury societies in Bandra's affluent neighborhoods of Pali Hill, Carter Road and Mount Mary, where property values are among the highest in the suburbs, are on the cusp of being redeveloped, and several of them have already signed agreements with leading builders.
Palmera Cooperative Housing Society (Pleasant Palace) is situated on a prime 1.5 acre plot with sea views in Malabar Hill on Narayan Dhabolkar Road. The 47-member association, which purchased the land in 1971, recently granted K Raheja Corp. from builder CL Raheja the rights to redevelop the property. The estimated cost of the redevelopment project, which will have a built-up area of about 1 lakh square feet in the free scale component, is Rs 20 billion.
When the Meher Apartments Co-op society called for redevelopment bids, many Grade A developers responded. The bids will be made public on 3 January 2023. Residents, who live in apartments ranging in size from 1,300 to 2,300 square feet, expect 50% more space in the new construction, one condo owner said. The society has 76 apartments in two buildings. “The association proposes to redevelop its residential buildings by using the full FSI potential on the net plot area and the allowed replaceable compensatory area,” the bidding document says.
Housing Associations in South Mumbai work with reputable builders to renovate their buildings. One of them is Giriraj, a housing association on Altamount Road, close to the Meher Apartments. It is known that JSW has acquired the redevelopment rights for the New Deluxe Apartments in the same neighbourhood.
According to Breach Candy, Saidale Co-op society (formerly Pratibha co-op Housing society) and KBK Developers (Rajendra Kothari) have reached an agreement on the construction of a new tower on the nearly two-hectare lot in Sophia College Rijbaan. Destroyed three years ago, the 36-story tower became known for FSI violations in the 1980s. K Raheja Corp. has been granted permission to redevelop the 43 member Balmoral Apartments Society on Mount Mary Road in Bandra (west). The Rahejas also obtained the redevelopment rights from the Queens and Grand Canyon housing associations on Pali Hill.
The MD of the Lodha Group, Abhishek Lodha, claimed that the relaxation of coastal zone regulations and the construction incentives provided by the new development control rules have enabled many coastal communities to redevelop. "Societies prefer A Grade developers because of the experience with many small developers who couldn't complete the projects," he said.
In the previous 12 months, there were 134 transactions, according to registration data, in which unit costs exceeded Rs 250 million. 58 of these units came from brand new sales (primary market) and the remaining 73 came from resale. “Prospects of new supply in an uncertain macroeconomic environment point to further stress in the ultra-luxury segment. According to the estimates, there are about 75,000 households in Mumbai costing more than Rs 250 million,” he said.
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