What is Redevelopment?
Redevelopment is basically demolishing existing old buildings and reconstructing it by appointing developers who bear the risk of construction and return apartment units to existing owners, free of cost.
The developers in this model reduce considerably the land acquisition risk however the regulatory risk continues to be high at the time of development.
But with some additional benefits and in return get legal access sell the balance land and space by constructing additional flats and shops obtained after approvals from the concerned government authorities.
TYPES OF REDEVELOPMENT
Prior consent of residents is required which is 70-75%.
A developer is chosen by the society residents.
The developer recruits specialized personnel i.e. builder, architects, etc.
Approvals and permissions required by the concerned authority. Eg:- MHADA in Mumbai.
Possibility of unfair trade practice by builders.
The prior consent of residents is required to be 100%.
The residents of the society act as the developer.
The residents choose specialized personnel – architects, contractors, project consultants, etc.
Residents save costs and retain the profits.
Faster delivery time and higher profits.
Benefits from authorities.
Pros of Redevelopment
1. Ensures stronger and more long-lasting buildings.
2. It provides a better standard of living.
3.The increased capital value of properties.
4.Well planned infrastructure.
5. Developer stands accountable with the introduction of RERA, 2016.
Cons of Redevelopment
1. Residents must look for temporary places to live.
2. Newly constructed modern amenities may increase the cost of maintenance.
3. Builders fail to provide an adequate rental amount.
4. Developers may try deceptive trade tricks.
5.Increase in the amount of property tax
Pros of Self-Redevelopment
•Requires full 100% consent from residents prior to the start of the project.