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Redevelopment of Old Building in Suburbs Gets Government Approval Subject to certain terms and conditions as mentioned hereunder

Redevelopment of old buildings in Mumbai suburbs and extended suburbs received a boost with the state cabinet approving the . Old rented properties can now get an FSI up to 2. And each tenant will, depending on the size of his earlier flat, get a new flat of equal area or a minimum of 225 square feet from the builder who redevelops the building. . According to various sources and sury  Mumbai's suburbs have 64,854 buildings, 19,032 of which are rented properties. About 50 percent of these buildings are owned by MHADA and the rest are privately owned. The statistics for the extended suburbs were unavailable.As most leasehold buildings in Mumbai suburbs are in bad shape because of insufficient care and illegal development. It has recommended that the residents of the new buildings be asked to compulsorily take the help of licensed architects, structural engineers, plumbers, engineers and other building experts so that they can be held responsible in case something goes wrong later. It has also suggested the constitution of a panel of building engineers who will issue certificates from time to time on the structural strength and condition of old leasehold buildings etc..................

Flat buyers hope to reap TDR harvest
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 It is going to be a windfall for developers, and hopefully, prospective flat buyers.

The lifting of ban on the use of Transfer of Development Rights (TDR) along the western and eastern corridors, redevelopment of old ceased buildings and freeing of mill lands and salt pan lands, plus the recent government decision to scrap Urban Land Ceiling (ULC), will see an estimated 200 million sq-ft land being made available for development in the next few years, say property experts.

“I have always believed that there is no scarcity of land in the city,” said Pankaj Kapoor of Liases Foras, a real estate rating agency. “Slums which occupy a major portion of the land have a huge amount of unconsumed floor space. Then there are salt pan lands and old cessed buildings. While it will take time for all these lands to be consumed, the huge development potential will reduce the demand ratio and help stabilise the property market.”

About 50 to 60 lakh sq-ft land can be absorbed immediately with the recent TDR order, he said.

Many view the TDR order as an opportunity to improve civic infrastructure. “It is a win-win situation. Considering the development potential around railway stations, one can construct parking lots above and below newly-built complexes, shopping centres and markets. It will decongest roads and encourage people to travel by public transport,” said Sunil Bajaj, a real estate consultant.

It will also give 200-plus existing old buildings a fresh lease of life. “With height restrictions removed, you can build higher and leave space for public amenities like wider roads and open spaces surrounding the buildings,” said M Shah, a suburban developer.

But let’s not be over-optimistic that property prices will crash. In just 24 hours, TDR prices for developers have jumped to Rs 2,500 a sq-ft, which in turn, will reflect on the rate one buys the flat. Property consultants assure that things will sober down after a year or more, once the supply starts trickling into the market.

“I should hope so,” said Mehul Shah, a sub stock broker residing in a chawl in Andheri (west). With a four-member familyto support, Shah had been debating to purchase a flat for the past two years. But every time he saved enough, the prices doubled to beyond his reach. He is fervently praying for a stable market.

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