Redevelopment leads to rise in rents in Bandra-Khar-Santacruz area

As the sound of piling machines and bulldozers reverberated via the western suburbs, the increase in the redevelopment of housing societies has resulted in an unexpected fallout: a shortage of rental flats in the Bandra-Khar-Santacruz area where hundreds of families who vacated their houses over the last few months have held virtually everything available on lease. As per the official data, the maximum redevelopment projects 780 were in the Bandra-Andheri belt in 2021. Rentals in parts of the western suburbs grew by 20-30% due to the demand for flats from those relocating from old buildings. Increasing demand and short supply have fuelled a drastic housing shortage for suburban renters. Developer Sanjay Devnani told the media over 80 new projects have been rolled out in Bandra’s H-west ward. A few old projects which had become non-viable have continued due to the premium advantages provided by the Brihanmumbai Municipal Corporation (BMC) till December 31, 2021. These projects have now come to a stage where current buildings have been razed, and old members are scouting for rental flats. Devnani told the media that the normal 2 and 3 BHKs witnessed an abnormal demand. Rentals have grown by 20%, and even apartments that had no takers have been rented out. Over 750 apartments have been undertaken in the last two months. 2 BHKs, which were going for Rs 60,000 a month are currently at Rs 75,000. A 3BHK which previously fetched a monthly rent of Rs 80,000 is presently at Rs 1.1 lakh. Image Source Also read: MHADA approves redevelopment of old buildings in Mumbai