A NEW ALLURE

Redevelopment is the only way that Mumbai can provide fresh stock of new homes

- By Team CW

The concrete jungle that is Mumbai is getting denser. This overpopulated city is seeing a bigger demand for homes (and sometimes new ones at that) than ever before. Developers are rubbing their hands in glee as more residents living in dilapidated homes approach them for redevelopment. Now a better time than any?

Tens of thousands of Mumbai citizens are contemplating as redevelopment fever sweeps the commercial capital, fuelled by a 12-year high in housing sales. On average, prices are up some 6% to 8% across the city but large apartments in newer buildings are selling for up to 15% more than last year. “This kind of redevelopment frenzy has never been seen before,” said Gulam Zia, senior executive director at Knight Frank. His team counted over 700 private building redevelopment agreements signed in the past five years. Industry estimates suggest a few thousand more are in the works, for old and young buildings.

RISING FROM THE ASHES

Redevelopment has several main advantages:

• More homes without using up new land

• Better infrastructure with improved sanitation, water supply, and public services

• Higher property values and a nicer-looking city overall

• New life for business and living areas helping the economy grow but there are problems too. Things like slow approvals legal fights, and pushback from current tenants often make redevelopment tricky. Also, paying for these projects can get complicated. It needs good teamwork between the government and private builders.