After a lull of four-five years, real estate industry in Ahmedabad seems to be warming up to the redevelopment mantra.It’s not only developers who are approaching prospective customers, the cooperative housing societies are also approaching developers for redevelopment of their societies. Recently, a couple of developers have bought old localities to replace them and build new towers in their place.
Many developers had opted for the redevelopment route five years back and had bought old residential societies to build residential or commercial complexes.
One such example was Videocon Realty that had bought Lotus Society on Ashram Road in mid-2008 for Rs30 crore to set up a hotel, which is now being utilised for building residential scheme. However, post-2008, no major development has taken place barring a few developers buying couple of individual bungalows for setting up luxurious apartments.
Currently, around half a dozen redevelopment projects are under various stages of negotiations. Chairman and managing director of Sun Builders, NK Patel said that around half a dozen cooperative societies have approached him for redevelopment of their societies.
As the developer gets land in the heart of the city and residents get good money or newly-constructed residential units, redevelopment is a win-win situation for both.
“However, it takes a lot of time to get consensus of all the members even after offering good deal,” Patel said.
He is also in talks with one of the residential societies in Paldi area. Couple of months back, a residential society had invited developers for redevelopment. Moreover, one more residential society in Vejalpur area has almost sealed the deal with a developer while another one is at an advance stage of negotiation.
“All members of our society have given written consent to the developer for redevelopment,” said a resident of Siddhivinayak Society in Vejalpur area.
Developers are keen on redevelopment only when they find it lucrative in terms of location. Natwar Patel (Natu Nobles) of Nobles Construction said that they have undertaken a redevelopment project in Navrangpura area.
“We are creating 12-storey building in place of ground plus three storey structure and the project is under development,” said Patel.Pavan Bakeri, managing director of Bakeri Engineering and Infrastructure, said that redevelopment projects are viable only when full FSI is not utilised in the old project.
“Moreover, plot size along with location matters a lot,” said Bakeri.However, market experts feel that redevelopment is limited to only certain prime locations only or bigger societies where the FSI has not been utilised fully.
“Unlike Mumbai, Ahmedabad still has huge undeveloped land stretches around the city area, so redevelopment has not become mandatory,” said a leading real estate consultant.
Source:www.dnaindia.com
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