Industry watchers opine that redevelopment of buildings in urban areas has many advantages and it is a win-win proposition for developers and buyers.
According to Anuj Puri, Chairman and Country Head of Jones Lang LaSalle India, redevelopment can be an economic engine if used correctly. Redevelopment also helps in boosting property value, creates jobs and eliminates urban decay and improves infrastructure, he said.
Redevelopment becomes a viable proposition for builders as they do not have to spend on purchasing the land, which forms a major portion of cost. It becomes a win-win for developers as well as the buyers, another industry watcher said.
Redevelopment makes better economic sense in the context scarcity of land, rising land prices and limited expansion possibilities.
Many developers are showing interest in redevelopment as government is also giving interest for such projects. For redevelopment, the Maharashtra government offers a floor space index of 2 (for MHADA-cessed buildings, it is 3).
DB Realty, Tata Housing, Unitech, Godrej Properties, Kalpataru group, Omkar Realtors, Hiranandanis, Oberoi Realty, Hubtown, Kumar Urban Development, Vakratunda group, HDIL and S Raheja are some of the leading players who have entered the redevelopment space now.
