Road to Redevelopment

04 Apr 2024 CW Team

Nayan Dedhia, Director, Toughcons Nirman, in conversation with R Srinivasan, says redevelopment is the way forward for land-starved Mumbai.

Does cluster development yield a better Floor Space Index (FSI) for developers?
Mumbai, a city steeped in history, is on the brink of a transformative era with the introduction of the Cluster Development policy. This innovative approach involves the collective redevelopment of numerous aging buildings and complexes, ushering in a new era of planned urban development. With thousands of structures in the city and suburbs set to benefit, the cluster development policy holds the key to not only revitalising the landscape but also providing additional floor space index (FSI) for residents is a welcome boon for both real estate developers and those residing in decades-old buildings.

Key features:
1. Minimum plot size: The cluster redevelopment scheme mandates a minimum plot size of 6,000 sq m in suburbs and 4,000 sq m in the island city to avail its benefits. This ensures that the policy is tailored to suit the diverse urban landscapes within Mumbai.

2. Eligibility criteria: Applicable to all legal buildings in Mumbai aged 30 years or more, the policy extends its reach even to structures under 30 years but declared as dangerous. This inclusive approach aims to address the broad spectrum of aging infrastructure in the city.

3. State approval: While the benefits of cluster redevelopment are evident, the state retains the final authority to sanction any cluster redevelopment project within the city. This oversight ensures that the policy aligns with broader urban planning goals and standards.

The promise of cluster redevelopment: It not only breathes new life into aging structures but also fosters a sense of community and shared vision for the future. It provides a unique opportunity for residents to witness their neighbourhoods undergo a planned metamorphosis, ensuring sustainable and well-coordinated urban growth.

Benefits for residents: For those living in decades-old buildings, the cluster redevelopment policy brings relief and hope. Additional floor space index translates to enhanced living spaces, improved amenities, and modernised infrastructure. The policy becomes a lifeline for residents seeking a more comfortable and contemporary living environment.

Opportunities for developers: Real estate developers, too, stand to gain significantly from the cluster redevelopment wave. As they collaborate on joint ventures, they unlock the potential for comprehensive and cohesive projects that align with contemporary urban planning principles. This symbiotic relationship between developers and residents paves the way for a harmonious and progressive urban landscape.

In conclusion, Mumbai's foray into cluster development marks a promising chapter in the city's evolution. As it navigates the challenges of urban growth, the cluster redevelopment policy stands as a beacon of innovation, offering a blueprint for other metropolises grappling with aging infrastructure. Through this collaborative approach, Mumbai aspires to reshape its skyline, ensuring a brighter and more sustainable future for generations to come.

Please tell us how redevelopment is driving up residential rentals in South Mumbai and suburbs.
In the face of acute land scarcity and escalating property prices, Mumbai has emerged as a hotspot for redevelopment. The city has witnessed over 1,000 redevelopment projects receiving approval annually since the onset of the pandemic, complementing ongoing initiatives from previous years. Projections indicate that this wave of redevelopment is poised to yield over 0.1 million new apartments over the next three years.

The epicentre of this redevelopment phenomenon is expected to be in South Mumbai, Central Mumbai, and the Western suburbs, regions grappling with low supply due to land constraints. Mumbai, India's financial capital, boasts the title of the nation's costliest real estate market, primarily attributed to exorbitant land costs. While demand for luxury homes has surged, high property prices have dissuaded buyers in the middle to affordable segments.

Redevelopment emerges as a strategic solution, allowing builders to generate new housing stock without the necessity of purchasing additional land. Simultaneously, it offers existing owners of aging buildings an opportunity to transition into modern homes, fostering a win-win scenario for both developers and residents.

With the increasing number of redevelopment projects, the construction landscape in the Mumbai Metropolitan Region has expanded significantly. Consequently, rental rates have experienced a substantial surge, escalating by 30-40 per cent compared to the customary annual rise of 5-10 per cent. This trend underscores the transformative impact of redevelopment, not only in addressing housing needs but also in reshaping the real estate dynamics of the city.

As Mumbai continues its journey towards urban renewal through redevelopment, it not only tackles the challenges of land scarcity but also contributes to the evolution of the city's skyline. This surge in construction activity brings forth a renewed vigour in the real estate market, offering potential residents a chance to dwell in modern spaces while breathing life into the aging architectural fabric of the city.

Please let us know how the Bombay Development Directorate (BDD) chawl redevelopment Ramabai Ambedkar Nagar (Ghatkopar) and Dharavi projects can serve as a course correction in Urban Planning?
In the heart of the Island City of Mumbai, a fertile field is experiencing a bumper harvest, as stakeholders in land value eagerly seize their share. The landscape has been shaped by significant infrastructure projects like the Eastern Freeway and the Coastal Road, coupled with regulatory revisions that strategically balance environmental considerations with an amplified potential for urban land development. This amalgamation has given a substantial boost to land prices, particularly in areas undergoing mega urban renewal initiatives such as the BDD Chawls and Dharavi, where real estate magnates are set to reap rewards they never sowed.

Taking cues from successful urban renewal projects worldwide, the spotlight turns to Singapore as an inspiring example. In the 1960s, Singapore grappled with shanties, slums, and ghettos, reminiscent of Mumbai's present-day Dharavi and BDD Chawl.

The Singapore Housing Development Board, established in 1969, played a pivotal role in meticulously crafting over 1.2 million homes, transforming the city's landscape into a beacon of integrated infrastructure and progressive society. Armed with the lessons learned from this transformative journey, the Dharavi and BDD Chawl Redevelopment Project aspire to integrate these invaluable insights into its own process of urban rejuvenation. The vision is not just about redevelopment but about fostering a holistic transformation that mirrors the success story of Singapore's urban evolution.

And what, according to you, are the challenges for developers in these three projects? Also compare the urban redevelopment of Dholera with Dharavi.
When it comes to vacating plots from slum tenants in the redevelopment of Dharavi, BDD Chawl, developers may face relatively fewer issues, thanks to government involvement. However, for developers, several challenges loom on the horizon:

- Consumption of FSI: Striking a balance in utilisation of Floor Space Index (FSI) poses a significant challenge for developers.
- Planning appropriate open spaces: Creating well-planned open spaces within the redevelopment project requires careful consideration and strategic planning.
- Infrastructure for rehab and sale components: The development of robust infrastructure for both rehabilitation and sale components demands meticulous planning and execution.
- Providing adequate car parking spaces: Balancing the need for sufficient car parking spaces in the redevelopment project is a critical aspect of the planning process.
- Housing sale rates: Determining competitive and viable housing sale rates that align with market dynamics and project costs is a key concern for developers.
- Huge investments: The scale and longevity of the project necessitate substantial financial investments, posing a challenge for developers.
- Long-term political and environmental impact: Given the multi-decade timeline of the project, navigating potential political and environmental impacts becomes a significant challenge.
In contrast, the landscape of Dholera stands as a testament to smart and sustainable urban planning. With clear land titles, extensive contiguous land parcels, blanket environmental clearance, state-of-the-art infrastructure, plug-and-play facilities, and the lowest power tariffs in India, Dholera emerges as a beacon of modern development. Enhanced connectivity, ICT-based city integrated operations, and other progressive features contribute to its appeal.

On the flip side, Dharavi presents a distinct set of challenges. With various land titles, existing slums, and divisions created by roads and infrastructure, the complexities of redevelopment are pronounced.

In the tale of two cities, Dholera and Dharavi, the contrasts illuminate the varied intricacies and considerations that shape the redevelopment landscape. While Dholera showcases a vision of a technologically advanced and sustainable city, Dharavi grapples with challenges posed by its diverse and complex urban fabric.

In the transition of BDD residents from chawls to skyscrapers (160 to 500 sq ft) are they being pushed into high-rises that will demand high maintenance?
The shift towards self-owned, more spacious apartments in the redevelopment of chawls presents a paradigm shift in lifestyle. However, this transition to isolated living, a concept unfamiliar and unwelcome to many, raises challenges. The design of the new apartment units prioritises individual ownership, a departure from the communal living residents were accustomed to. Despite the promise of modern amenities like private entrances and access to gyms, crèches and clinics, concerns linger.

Even beyond these lifestyle adjustments, the current redevelopment proposal is poised to disrupt the residents' sense of belonging in the long run. The incorporation of private ownership comes with inherent high maintenance costs, a financial burden that many chawl residents may struggle to bear. While the government has pledged financial assistance for the initial 10 years, sustaining these costs independently remains a looming challenge.

Moreover, despite individuals being registered as owners of their respective apartments, the absence of collective ownership of the land or the building introduces another layer of complexity. This nuanced distinction in ownership dynamics underscores the intricate challenges posed by the redevelopment plan.

In essence, as chawl residents grapple with the prospect of upgraded living spaces, there arises a delicate balance between individual aspirations and the realities of sustainable, collective living. The proposed changes beckon residents to weigh the benefits against the potential drawbacks, prompting a nuanced exploration of the social fabric woven into the chawl communities and the intricate choices that lie ahead.

Only 2,400 families from BDD shifted to transit camps, which is less than half of the number of 5,104 tenements meant to be relocated in Phase-I of the relocation process. In the past 35-40 years, only about 2,500 cessed buildings were redeveloped. At this pace, how many years will it take to redevelop all 16,000 buildings and what should be done to expedite these projects?
In the realm of cessed buildings, developers find themselves entangled in an intricate web of challenges, each presenting a unique hurdle in the path to successful redevelopment. From title disputes and litigation to conflicts over heirship, delayed court orders, incomplete Intimation of Disapproval (IOD) conditions, pending No Objection Certificates (NOCs), Ministry of Environment and Forests (MoEF) issues and reservations – the landscape is rife with complexities.

Many developers have dedicated considerable efforts to untangle these intricate issues, often contending with unexpected hurdles, financial burdens, and the emergence of controversies. Even as some projects meeting the necessary criteria successfully surmounted these challenges, controversies erupted over the issuance of completion certificates (CCs). The BMC's demand for additional premiums in such cases ignited legal and ethical debates, casting a shadow over the achievements in cessed building redevelopment.

This contentious issue has become a significant obstacle in various cessed buildings, prompting a critical examination of the processes, policies and ethical considerations surrounding redevelopment initiatives. The journey through the labyrinth of challenges in cessed building redevelopment unveils a complex narrative where successes are intertwined with controversies, and the path forward requires a delicate balance between regulatory compliance and ethical practices.

What is the way ahead for redevelopment in Mumbai in the years to come?
Embarking on redevelopment projects in Mumbai demands resilience, resourcefulness and unwavering commitment from developers. However, in this complex journey, the principles of fairness and transparency are equally vital. Developers require robust support to overcome challenges, ensuring their endeavours contribute meaningfully to the city's transformation.

The ongoing controversy surrounding additional premiums for Mumbai's redevelopment projects casts a spotlight on the hurdles developers face. While eagerly seizing the opportunity to breathe new life into the city, they grapple with formidable challenges that demand attention and resolution.

Mumbai boasts an extensive inventory of aging, dilapidated buildings situated on prime land across the city. The latest redevelopment scheme presents a golden opportunity for both homeowners residing in these structures and developers aiming to shape the city's skyline. Residents of old buildings stand to gain larger living spaces, modern amenities, and an improved lifestyle. Simultaneously, developers can offer these additional residences to new homebuyers, creating a mutually beneficial scenario for all stakeholders.

In this intricate dance between progress and challenges, developers strive to balance the revitalisation of Mumbai with the fair and transparent resolution of issues. The key lies in fostering an environment where developers receive the necessary support, ensuring their contributions lead to a win-win outcome for all involved parties.

Nayan Dedhia, Director, Toughcons Nirman, in conversation with R Srinivasan, says redevelopment is the way forward for land-starved Mumbai. Does cluster development yield a better Floor Space Index (FSI) for developers? Mumbai, a city steeped in history, is on the brink of a transformative era with the introduction of the Cluster Development policy. This innovative approach involves the collective redevelopment of numerous aging buildings and complexes, ushering in a new era of planned urban development. With thousands of structures in the city and suburbs set to benefit, the cluster development policy holds the key to not only revitalising the landscape but also providing additional floor space index (FSI) for residents is a welcome boon for both real estate developers and those residing in decades-old buildings. Key features: 1. Minimum plot size: The cluster redevelopment scheme mandates a minimum plot size of 6,000 sq m in suburbs and 4,000 sq m in the island city to avail its benefits. This ensures that the policy is tailored to suit the diverse urban landscapes within Mumbai. 2. Eligibility criteria: Applicable to all legal buildings in Mumbai aged 30 years or more, the policy extends its reach even to structures under 30 years but declared as dangerous. This inclusive approach aims to address the broad spectrum of aging infrastructure in the city. 3. State approval: While the benefits of cluster redevelopment are evident, the state retains the final authority to sanction any cluster redevelopment project within the city. This oversight ensures that the policy aligns with broader urban planning goals and standards. The promise of cluster redevelopment: It not only breathes new life into aging structures but also fosters a sense of community and shared vision for the future. It provides a unique opportunity for residents to witness their neighbourhoods undergo a planned metamorphosis, ensuring sustainable and well-coordinated urban growth. Benefits for residents: For those living in decades-old buildings, the cluster redevelopment policy brings relief and hope. Additional floor space index translates to enhanced living spaces, improved amenities, and modernised infrastructure. The policy becomes a lifeline for residents seeking a more comfortable and contemporary living environment. Opportunities for developers: Real estate developers, too, stand to gain significantly from the cluster redevelopment wave. As they collaborate on joint ventures, they unlock the potential for comprehensive and cohesive projects that align with contemporary urban planning principles. This symbiotic relationship between developers and residents paves the way for a harmonious and progressive urban landscape. In conclusion, Mumbai's foray into cluster development marks a promising chapter in the city's evolution. As it navigates the challenges of urban growth, the cluster redevelopment policy stands as a beacon of innovation, offering a blueprint for other metropolises grappling with aging infrastructure. Through this collaborative approach, Mumbai aspires to reshape its skyline, ensuring a brighter and more sustainable future for generations to come. Please tell us how redevelopment is driving up residential rentals in South Mumbai and suburbs. In the face of acute land scarcity and escalating property prices, Mumbai has emerged as a hotspot for redevelopment. The city has witnessed over 1,000 redevelopment projects receiving approval annually since the onset of the pandemic, complementing ongoing initiatives from previous years. Projections indicate that this wave of redevelopment is poised to yield over 0.1 million new apartments over the next three years. The epicentre of this redevelopment phenomenon is expected to be in South Mumbai, Central Mumbai, and the Western suburbs, regions grappling with low supply due to land constraints. Mumbai, India's financial capital, boasts the title of the nation's costliest real estate market, primarily attributed to exorbitant land costs. While demand for luxury homes has surged, high property prices have dissuaded buyers in the middle to affordable segments. Redevelopment emerges as a strategic solution, allowing builders to generate new housing stock without the necessity of purchasing additional land. Simultaneously, it offers existing owners of aging buildings an opportunity to transition into modern homes, fostering a win-win scenario for both developers and residents. With the increasing number of redevelopment projects, the construction landscape in the Mumbai Metropolitan Region has expanded significantly. Consequently, rental rates have experienced a substantial surge, escalating by 30-40 per cent compared to the customary annual rise of 5-10 per cent. This trend underscores the transformative impact of redevelopment, not only in addressing housing needs but also in reshaping the real estate dynamics of the city. As Mumbai continues its journey towards urban renewal through redevelopment, it not only tackles the challenges of land scarcity but also contributes to the evolution of the city's skyline. This surge in construction activity brings forth a renewed vigour in the real estate market, offering potential residents a chance to dwell in modern spaces while breathing life into the aging architectural fabric of the city. Please let us know how the Bombay Development Directorate (BDD) chawl redevelopment Ramabai Ambedkar Nagar (Ghatkopar) and Dharavi projects can serve as a course correction in Urban Planning? In the heart of the Island City of Mumbai, a fertile field is experiencing a bumper harvest, as stakeholders in land value eagerly seize their share. The landscape has been shaped by significant infrastructure projects like the Eastern Freeway and the Coastal Road, coupled with regulatory revisions that strategically balance environmental considerations with an amplified potential for urban land development. This amalgamation has given a substantial boost to land prices, particularly in areas undergoing mega urban renewal initiatives such as the BDD Chawls and Dharavi, where real estate magnates are set to reap rewards they never sowed. Taking cues from successful urban renewal projects worldwide, the spotlight turns to Singapore as an inspiring example. In the 1960s, Singapore grappled with shanties, slums, and ghettos, reminiscent of Mumbai's present-day Dharavi and BDD Chawl. The Singapore Housing Development Board, established in 1969, played a pivotal role in meticulously crafting over 1.2 million homes, transforming the city's landscape into a beacon of integrated infrastructure and progressive society. Armed with the lessons learned from this transformative journey, the Dharavi and BDD Chawl Redevelopment Project aspire to integrate these invaluable insights into its own process of urban rejuvenation. The vision is not just about redevelopment but about fostering a holistic transformation that mirrors the success story of Singapore's urban evolution. And what, according to you, are the challenges for developers in these three projects? Also compare the urban redevelopment of Dholera with Dharavi. When it comes to vacating plots from slum tenants in the redevelopment of Dharavi, BDD Chawl, developers may face relatively fewer issues, thanks to government involvement. However, for developers, several challenges loom on the horizon: - Consumption of FSI: Striking a balance in utilisation of Floor Space Index (FSI) poses a significant challenge for developers. - Planning appropriate open spaces: Creating well-planned open spaces within the redevelopment project requires careful consideration and strategic planning. - Infrastructure for rehab and sale components: The development of robust infrastructure for both rehabilitation and sale components demands meticulous planning and execution. - Providing adequate car parking spaces: Balancing the need for sufficient car parking spaces in the redevelopment project is a critical aspect of the planning process. - Housing sale rates: Determining competitive and viable housing sale rates that align with market dynamics and project costs is a key concern for developers. - Huge investments: The scale and longevity of the project necessitate substantial financial investments, posing a challenge for developers. - Long-term political and environmental impact: Given the multi-decade timeline of the project, navigating potential political and environmental impacts becomes a significant challenge. In contrast, the landscape of Dholera stands as a testament to smart and sustainable urban planning. With clear land titles, extensive contiguous land parcels, blanket environmental clearance, state-of-the-art infrastructure, plug-and-play facilities, and the lowest power tariffs in India, Dholera emerges as a beacon of modern development. Enhanced connectivity, ICT-based city integrated operations, and other progressive features contribute to its appeal. On the flip side, Dharavi presents a distinct set of challenges. With various land titles, existing slums, and divisions created by roads and infrastructure, the complexities of redevelopment are pronounced. In the tale of two cities, Dholera and Dharavi, the contrasts illuminate the varied intricacies and considerations that shape the redevelopment landscape. While Dholera showcases a vision of a technologically advanced and sustainable city, Dharavi grapples with challenges posed by its diverse and complex urban fabric. In the transition of BDD residents from chawls to skyscrapers (160 to 500 sq ft) are they being pushed into high-rises that will demand high maintenance? The shift towards self-owned, more spacious apartments in the redevelopment of chawls presents a paradigm shift in lifestyle. However, this transition to isolated living, a concept unfamiliar and unwelcome to many, raises challenges. The design of the new apartment units prioritises individual ownership, a departure from the communal living residents were accustomed to. Despite the promise of modern amenities like private entrances and access to gyms, crèches and clinics, concerns linger. Even beyond these lifestyle adjustments, the current redevelopment proposal is poised to disrupt the residents' sense of belonging in the long run. The incorporation of private ownership comes with inherent high maintenance costs, a financial burden that many chawl residents may struggle to bear. While the government has pledged financial assistance for the initial 10 years, sustaining these costs independently remains a looming challenge. Moreover, despite individuals being registered as owners of their respective apartments, the absence of collective ownership of the land or the building introduces another layer of complexity. This nuanced distinction in ownership dynamics underscores the intricate challenges posed by the redevelopment plan. In essence, as chawl residents grapple with the prospect of upgraded living spaces, there arises a delicate balance between individual aspirations and the realities of sustainable, collective living. The proposed changes beckon residents to weigh the benefits against the potential drawbacks, prompting a nuanced exploration of the social fabric woven into the chawl communities and the intricate choices that lie ahead. Only 2,400 families from BDD shifted to transit camps, which is less than half of the number of 5,104 tenements meant to be relocated in Phase-I of the relocation process. In the past 35-40 years, only about 2,500 cessed buildings were redeveloped. At this pace, how many years will it take to redevelop all 16,000 buildings and what should be done to expedite these projects? In the realm of cessed buildings, developers find themselves entangled in an intricate web of challenges, each presenting a unique hurdle in the path to successful redevelopment. From title disputes and litigation to conflicts over heirship, delayed court orders, incomplete Intimation of Disapproval (IOD) conditions, pending No Objection Certificates (NOCs), Ministry of Environment and Forests (MoEF) issues and reservations – the landscape is rife with complexities. Many developers have dedicated considerable efforts to untangle these intricate issues, often contending with unexpected hurdles, financial burdens, and the emergence of controversies. Even as some projects meeting the necessary criteria successfully surmounted these challenges, controversies erupted over the issuance of completion certificates (CCs). The BMC's demand for additional premiums in such cases ignited legal and ethical debates, casting a shadow over the achievements in cessed building redevelopment. This contentious issue has become a significant obstacle in various cessed buildings, prompting a critical examination of the processes, policies and ethical considerations surrounding redevelopment initiatives. The journey through the labyrinth of challenges in cessed building redevelopment unveils a complex narrative where successes are intertwined with controversies, and the path forward requires a delicate balance between regulatory compliance and ethical practices. What is the way ahead for redevelopment in Mumbai in the years to come? Embarking on redevelopment projects in Mumbai demands resilience, resourcefulness and unwavering commitment from developers. However, in this complex journey, the principles of fairness and transparency are equally vital. Developers require robust support to overcome challenges, ensuring their endeavours contribute meaningfully to the city's transformation. The ongoing controversy surrounding additional premiums for Mumbai's redevelopment projects casts a spotlight on the hurdles developers face. While eagerly seizing the opportunity to breathe new life into the city, they grapple with formidable challenges that demand attention and resolution. Mumbai boasts an extensive inventory of aging, dilapidated buildings situated on prime land across the city. The latest redevelopment scheme presents a golden opportunity for both homeowners residing in these structures and developers aiming to shape the city's skyline. Residents of old buildings stand to gain larger living spaces, modern amenities, and an improved lifestyle. Simultaneously, developers can offer these additional residences to new homebuyers, creating a mutually beneficial scenario for all stakeholders. In this intricate dance between progress and challenges, developers strive to balance the revitalisation of Mumbai with the fair and transparent resolution of issues. The key lies in fostering an environment where developers receive the necessary support, ensuring their contributions lead to a win-win outcome for all involved parties.