Birla Estates Buys Rs 1,590 Mn of FSI for Khar Redevelopment
Real Estate

Birla Estates Buys Rs 1,590 Mn of FSI for Khar Redevelopment

Birla Estates has purchased Rs 1,590 mn of floor space index transferable development rights for a redevelopment project in Khar. The firm paid consideration equivalent to about Rs 0.195 mn per sq m of FSI acquired to develop a one point three-acre site in a joint venture. The scheme covers the redevelopment of Bharatiya Bhavan Cooperative Housing Society and Anmol Cooperative Housing Society and has a saleable area of around 0.29 mn sq ft with an estimated revenue potential of Rs 17 bn. The acquisition underlines the rising market value of development rights in western suburbs where developable land is limited.

The transaction illustrates how transferable FSI generated through slum rehabilitation authority schemes can be moved to eligible receiving plots, subject to regulatory approvals under DCPR 2034. CRE Matrix’s chief executive said the ability to transfer eligible FSI provides developers greater flexibility in land-constrained markets and supports construction potential at receiving properties. Developers therefore increasingly view fungible FSI and TDR as instruments to augment project economics without buying additional land.

Earlier activity in the market included Mumbai-based Rustomjee acquiring 8,800.74 sq m of FSI from Parth Construction for Rs 1.4345 bn, with the rights originating from an SRA project in Jogeshwari East and being moved to Andheri; the deal also included 24 car parking spaces. Such transactions vary in quantum and pricing depending on the source of rights, receiving location and regulatory limits, but they signal development potential has become a significant project cost component. In established suburbs such as Khar, Bandra, Andheri and Juhu, redevelopment remains the practical route for new construction given the difficulty of assembling large contiguous parcels.

The SRA framework thus creates a market for development rights by granting developers additional loading under the prescribed TDR framework, enabling rehabilitation projects to generate transferable potential. Under the regulations slum TDR is recognised within permissible TDR loading and can be utilised on receiving plots within prescribed limits. This mechanism can improve project viability and allow construction in locations where land supply is structurally constrained.

Birla Estates has purchased Rs 1,590 mn of floor space index transferable development rights for a redevelopment project in Khar. The firm paid consideration equivalent to about Rs 0.195 mn per sq m of FSI acquired to develop a one point three-acre site in a joint venture. The scheme covers the redevelopment of Bharatiya Bhavan Cooperative Housing Society and Anmol Cooperative Housing Society and has a saleable area of around 0.29 mn sq ft with an estimated revenue potential of Rs 17 bn. The acquisition underlines the rising market value of development rights in western suburbs where developable land is limited. The transaction illustrates how transferable FSI generated through slum rehabilitation authority schemes can be moved to eligible receiving plots, subject to regulatory approvals under DCPR 2034. CRE Matrix’s chief executive said the ability to transfer eligible FSI provides developers greater flexibility in land-constrained markets and supports construction potential at receiving properties. Developers therefore increasingly view fungible FSI and TDR as instruments to augment project economics without buying additional land. Earlier activity in the market included Mumbai-based Rustomjee acquiring 8,800.74 sq m of FSI from Parth Construction for Rs 1.4345 bn, with the rights originating from an SRA project in Jogeshwari East and being moved to Andheri; the deal also included 24 car parking spaces. Such transactions vary in quantum and pricing depending on the source of rights, receiving location and regulatory limits, but they signal development potential has become a significant project cost component. In established suburbs such as Khar, Bandra, Andheri and Juhu, redevelopment remains the practical route for new construction given the difficulty of assembling large contiguous parcels. The SRA framework thus creates a market for development rights by granting developers additional loading under the prescribed TDR framework, enabling rehabilitation projects to generate transferable potential. Under the regulations slum TDR is recognised within permissible TDR loading and can be utilised on receiving plots within prescribed limits. This mechanism can improve project viability and allow construction in locations where land supply is structurally constrained.

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