Extra carpet area is the new dealmaker

Developers sweeten deals for tenants with up to 130% extra space, but experts warn of overexuberance

- PRACHI PISAL

In Mumbai's crowded redevelopment market, developers are pushing the envelope by offering significantly larger homes to tenants of ageing housing societies. With competition intensifying and liquidity from recent strong sales lifting confidence, societies are being offered 70-130 per cent extra carpet area, particularly in the city's most sought-after neighbourhoods.

For tenants, this translates into the promise of spacious, modern apartments replacing crumbling old buildings. For developers, it's a strategy to secure projects, as vacant land is scarce and redevelopment remains the most cost-effective way to enter marquee markets.

"Additional area being offered to existing tenants is a natural evolution," said Chintan Sheth, chairman and managing director (MD) of Sheth Realty. "Redevelopment genuinely upgrades lifestyles with modern layouts and future-ready amenities. As long as project fundamentals are strong and design efficiency is maintained, the additional space creates value for everyone."