Redevelopment-of-Housing-Societies-Mumbai

The Essential Guide to Redevelopment of Housing Societies

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Redevelopment-of-Housing-Societies-Mumbai

The Essential Guide to Redevelopment of Housing Societies

Redevelopment of housing societies is an essential and transformative process, especially in bustling cities like Mumbai. As buildings age and urban landscapes evolve, redeveloping old structures becomes crucial for improving living conditions, maximizing space utilization, and enhancing property values. Many housing societies, especially those built decades ago, need redevelopment.

If you’re part of a housing society considering redevelopment, this guide will walk you through the benefits, processes, and key stages involved. And when it comes to executing this complex task, Arkade stands out as a trusted partner, ensuring a smooth and rewarding redevelopment journey.

Benefits of Society Redevelopment in Mumbai

Redevelopment of societies offers numerous advantages, particularly in a metropolitan hub like Mumbai:

  • Enhanced Living Standards: Modern amenities like fire safety systems, elevators, proper ventilation, and earthquake resistance become a reality.
  • Increased space: Residents typically receive a larger carpet area in the new building, translating to more living space.
  • Increased Property Value: A redeveloped society commands a significantly higher market value, benefiting future generations.
  • Better Utilization of Space: Optimized layouts provide more usable space and better design.
  • Safety and Compliance: New buildings meet contemporary safety standards and regulations, ensuring a secure living environment.
  • Sustainable Living: Incorporating eco-friendly technologies and materials reduces environmental impact.

New Rules for Redevelopment of Societies

The redevelopment of housing societies in Mumbai is governed by specific regulations to ensure fair practices, and safety, to streamline the redevelopment process

  • Minimum consent: The minimum consent required from society members for redevelopment has been reduced to 66%.
  • Transparent Bidding: Society redevelopment tenders in Mumbai should be transparent to ensure a fair selection of builders.
  • Regulatory Approvals: Necessary approvals from municipal authorities and adherence to building codes are mandatory.
  • Faster approvals: Streamlined procedures aim to expedite approvals and minimize project delays.
  • Member Protection: Rules ensure that the rights and interests of all society members are safeguarded during the redevelopment process.

These changes are positive developments for housing societies considering redevelopment in Mumbai.

Understanding the Redevelopment Process

The redevelopment process of a housing society involves several steps and thorough planning:

  • Gain member approval: Hold a Special General Body Meeting and secure a majority vote in favor of redevelopment.
  • Engage professional guidance: Hire legal and project management consultants to assist society members throughout the process.
  • Prepare tender documents: Finalize the draft tender and feasibility reports prepared by the consultant.
  • Invite developer bids: Publicly announce the redevelopment project and invite developers to submit bids following the tender guidelines.
  • Shortlist qualified developers: The consultant will evaluate proposals based on factors like financial strength, experience, and past performance. Shortlisted developers will be invited for a site visit and presentation.
  • Finalize developer selection: Developers submit final offers, and the society chooses the best option in the presence of a designated officer.
  • Secure legal agreements: Both parties finalize the Development Agreement, Power of Attorney, and plans. These require approval at a Special General Body Meeting before submission for registration and official approvals.
  • Vacate and allocate flats: Upon receiving approvals, the developer issues a vacating notice. The society allocates new flats to existing members, and the developer registers the Permanent Accommodation Agreement.
  • Construction and handover: The developer commences construction after obtaining possession of the society land. Once the Occupation Certificate is issued, the society is informed to take possession of their new flats.

Key Stages of Society Redevelopment

  1. Feasibility study: This stage involves assessing the building’s condition, potential floor space index (FSI), and legal aspects.
  2. Planning and Approvals: Detailed planning, design approvals, and compliance with regulatory requirements. Working on obtaining approvals from MCGM and other authorities may take time, but it’s important to stay patient and ensure compliance with regulations for a smooth process.
  3. Temporary Relocation: Arranging alternate accommodation for residents during the construction phase.
  4. Demolition and Construction: Safe demolition of old structures and construction of new buildings.
  5. Handover: Completing the construction, obtaining occupancy certificates, and handing over the new homes to residents.

Builder vs. Self-Redevelopment

Choosing between hiring a builder and opting for self-redevelopment is a critical decision:

Builder Redevelopment: The society appoints a developer who handles the entire process in exchange for a share of the additional built-up space. Professional builders bring expertise, financial backing, and a streamlined process. Arkade Group, for instance, offers comprehensive services ensuring a hassle-free experience.

Self-Redevelopment: The society takes charge of the project, appointing professionals like architects and contractors. While potentially more cost-effective, it requires significant effort, expertise, and financial risk management from the society members.

Redevelopment Checklist for Housing Societies in Mumbai

  • Conduct a Feasibility Study
  • Obtain Member’s Consent
  • Choose a Reputable Builder
  • Understand and navigate the approval process
  • Secure Financial Backing
  • Ensure Legal Compliance
  • Plan for Temporary Relocation
  • Monitor Construction Progress
  • Ensure Quality Assurance
  • Maintain clear and transparent communication with society members

What sets Arkade apart!

At Arkade, we are committed to establishing a personalized connection with all stakeholders involved in the redevelopment process. From initial consultations to final handover, we ensure clear communication, transparency, and a collaborative approach. Our dedicated team understands and addresses the unique needs of each housing society, providing tailored solutions that align with their vision.

Financial Stability

When you partner with Arkade, you gain access to our unparalleled financial stability. Our substantial financial backing and expertise guarantee a redevelopment process that is not only seamless but also financially secure. With our robust financial strength, we efficiently manage large-scale projects and consistently deliver on our promises without any compromises on quality and without delays.

Redevelopment of housing societies is a crucial step towards enhancing living conditions, ensuring safety, and increasing property values, particularly in a dynamic city like Mumbai. By understanding the benefits, staying informed about the rules, and following a structured redevelopment process, housing societies can navigate this complex journey effectively. 

Choosing Arkade for the redevelopment of your housing society ensures a smooth, reliable, and rewarding experience.

Think Redevelopment, Think Arkade!

Self-Redevelopment-in-Mumbai-Blog

Self-Redevelopment in Mumbai: A Comprehensive Guide for Societies

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Self-Redevelopment-in-Mumbai-Blog

Self-Redevelopment in Mumbai: A Comprehensive Guide for Societies

Living in Mumbai often comes with the reality of aging buildings. While the city’s charm is undeniable, its older structures might not offer the modern amenities or safety standards you desire. This is where redevelopment comes in. This process empowers residents to transform their old society into a brand-new one, with the help of a developer. 
An alternative to redevelopment is self-redevelopment. Self Redevelopment is a process in which residents of a housing society or community take on the task of redeveloping their property themselves, rather than relying on developers. This approach ensures that the interests of the existing residents are prioritized and maintains better control over the redevelopment process. 
This blog serves as your one-stop guide to self-redevelopment in Mumbai. We’ll explore eligibility criteria, delve into the advantages and disadvantages, walk you through the step-by-step procedure, and even clarify the difference between redevelopment and self-redevelopment.

Eligibility Criteria for Self-Redevelopment

Here’s the good news: most housing societies in Mumbai are eligible for self-redevelopment. There are a few basic requirements:

  • The society must be registered under the Maharashtra Cooperative Societies Act, 1960.
  • A minimum of 66% of the members by share capital and 51% of members by occupancy need to approve the proposal.
  • The building should be at least 30 years old (or deemed unfit for occupancy by a structural engineer).
  • Society should hold clear land titles.
  • Society must be financially stable to manage project costs.

Benefits of Self-Redevelopment in Mumbai

Self-redevelopment offers a huge amount of advantages for societies:

  • Modern living: Imagine spacious apartments with modern amenities like gyms, swimming pools, and landscaped gardens. Self-redevelopment makes this dream a reality.
  • Increased property value: A brand new building translates to a significant increase in property value for each member. This can be a great financial benefit.
  • No displacement: Unlike traditional redevelopment, self-redevelopment allows you to stay put while the new building is constructed. You’ll move into your new, bigger apartment once the project is complete.
  • Control over the process: Societies have complete control over the design, amenities, and selection of contractors, ensuring the project aligns with their vision.
  • Profit Sharing: The society retains profits from selling additional saleable space.
  • Transparency: Greater control over project execution and material selection.

Important Note: These benefits come with significant challenges, as explored further in the blog.

Disadvantages of Self-Redevelopment in Mumbai.

While attractive, self-redevelopment isn’t without its challenges:

  • Time-consuming process: Obtaining approvals, managing finances, and navigating legalities can be a lengthy process, requiring patience and commitment from all members.
  • Unanimity among members: Achieving 66% approval can be difficult, especially if there are disagreements about design or financial aspects.
  • Financial burden: While there are government incentives, self-redevelopment can involve significant financial outlays for society. Delays can escalate costs.
  • Expertise Gap: Securing approvals, managing finances, and construction expertise can be overwhelming for residents.
  • Decision-Making: Reaching consensus among a large group can be time-consuming and lead to disagreements.
  • Dispute Resolution: Anticipate potential conflicts and establish a clear dispute resolution mechanism within the society.

Self-Redevelopment Procedure in Mumbai

The self-redevelopment process in Mumbai can be broadly broken down into these steps:

  1. Feasibility study: A professional architect or consultant evaluates the project’s feasibility, taking into account factors such as FSI (Floor Space Index) and available finances.
  2. Member approval: The society holds meetings to discuss the feasibility study and obtain the required majority approval.
  3. Appointing professionals: Architects, engineers, and legal advisors are brought on board to handle the design, approvals, and legalities.
  4. Approval process: The society submits plans to get approvals from various authorities like BMC (Brihanmumbai Municipal Corporation), TMC (Thane Municipal Corporation), NMMC (Navi-Mumbai Municipal Corporation), etc..
  5. Financial planning: Societies need to explore options like bank loans or internal member contributions to finance the project.
  6. Construction phase: Once approvals and finances are in place, construction begins with close monitoring by the society.

Redevelopment vs Self-Redevelopment

The key difference between Redevelopment with Builder and Self Redevelopment is who takes the lead. In traditional redevelopment, a builder approaches the society with a proposal to demolish and rebuild the structure in collaboration with the society. It is more efficient for the residents as all the permissions and protocols would be fulfilled by the developer.  The society receives new apartments and the developer controls the design, amenities, and profits.
On the other hand, Self-redevelopment puts you in complete control of design and profits but requires a significant time investment from members to navigate approvals, and manage construction, and Finances.
 

Redeveloping your home with a Real Estate Developer:

Advantages:

  • Expertise & Experience: Reputed builders like Arkade bring proven expertise in project management, construction, and approvals.
  • Financial Strength: Builders can leverage their financial resources to expedite the project and minimize delays.
  • Reduced Time Commitment: Societies can focus on core functions while the builder handles project execution.

Disadvantages:

  • Profit Sharing: Profits from additional saleable space are shared with the builder.
  • Limited Customization: Societies may have less control over the design and amenities offered.

Taking the First Step

Self-redevelopment can be a transformative journey for your society. If you’re considering this path, research thoroughly, seek professional guidance from experienced self-redevelopment consultants in Mumbai, and ensure open communication among members. 
For many societies, partnering with a reputable builder offers a more efficient and less time-consuming approach. Experienced builders bring valuable expertise in project management, construction, and navigating the approval process. Their financial resources can expedite the project and minimize delays. 

Self-redevelopment in Mumbai can be a rewarding experience, offering greater control and potential financial benefits. With careful planning and collaboration, you can turn your aging building into a dream home for generations to come.