Kalpataru Ltd has acquired the rights to redevelop a large housing society spread over nearly 4 acres in Mumbai’s western suburb Andheri’s Lokhandwala locality, said persons with direct knowledge of the development.The proposed redevelopment project has a total estimated development of over 8 lakh sq ft including 5 lakh sq ft saleable area with revenue potential of over Rs 2,100 crore.
The entire layout currently has a total 12 residential buildings housing 290 apartments spread over 1.90 lakh sq ft. The redevelopment project entails rehousing and providing a total 3 lakh sq ft redeveloped space.
The company has inked the development agreement for this redevelopment project that is expected to be completed in four years.
“The developer is in the process of chalking out a plan including specific layout and design of the project that will have an uninhibited view of mangroves,” said one of the persons mentioned above.
Over the past few years, several realty developers have reworked their business strategies to focus on asset-light models, such as joint development and development management agreements.
Real estate projects involving the redevelopment of old housing societies and rehabilitation are the mainstay of the Mumbai region’s property market, as the land-starved city and its peripheral areas have few vacant land parcels.
In July, the government of Maharashtra said that a member of a housing society that undergoes redevelopment need not pay stamp duty on the allotted permanent accommodation as part of the project.
Following this, the member of the housing society undergoing redevelopment is expected to pay only Rs 100 as stamp duty, while the principal agreement between the development and the housing society will be charged as per the conveyance.
The state government’s decision is expected to help push the redevelopment of many old and dilapidated housing societies across key cities in the state.
The Mumbai property market has continued its record-setting spree to surpass all benchmarks and scale a new all-time high almost every month, despite higher interest rates and rising property prices. Luxury, premium, and mid-income segment properties are the ones driving this performance.
The country’s commercial capital has been achieving a new peak in terms of both property registration and the state exchequer’s revenue collection through stamp duty charges.