Want to own an apartment with the latest facilities in the heart of Delhi?
Citizens may soon be able to buy homes in upscale colonies in south, west and central Delhi, with real estate companies looking to redevelop traditional colonies to cash in on the ‘Delhi address fix’. The target — traditional families who do not wish to move to Gurgaon or Noida.
High-rise apartments are already replacing two-three storey buildings in specific localities, with local property dealers and builders carrying out construction works. Now, one of India’s biggest industrial houses, Tata Group, is eyeing a business opportunity there, beginning with a land parcel in west Delhi. The group is already developing certain projects in Mumbai.
The houses are likely to be priced on the higher side, mainly due to their locations.
“Right now we have not finalised anything, but we are looking for land parcel in West Delhi,” Brotin Banerjee, CEO and MD, Tata Housing Development Company, told HT.
Tata Housing will take over a chunk of houses and aggregate the land to construct residential towers, relocating the old owners. If today, one independent house has three floors, once converted into a multi-story residential tower of, for instance, 10 floors, Tata Housing will sell the remaining seven floors.
For existing residents, it could mean moving to a new four-bedroom flat from the earlier two or three.
“In Mumbai, the rising costs and lack of space make it unfeasible for residents to move out of dilapidated housing societies. There are also security issues and lack of modern amenities. In such a scenario, redevelopment can offer a long-term solution to the problem. That has been our strategy to develop projects in prime locations. We are adopting the same strategy in the Delhi market,” Banerjee said.
“A number of buildings in Delhi are getting dilapidated and there is lack of space. The only way to get additional inventory in the city is to redevelop societies, to give consumers the latest amenities. Redevelopment will also boost housing and urban development in the Capital,” he added.
The National Building Construction Company (NBCC) is already redeveloping three government colonies at Netaji Nagar, Kasturba Nagar and Thyagraj Nagar in south Delhi.
Another real estate major, KP Singh-led DLF, has taken over some old mill lands and are converting them into residential towers.
“This is a wonderful opportunity both for new consumers and existing residents. Redeveloping the existing land is the only option to cater to the rising demand. Tata’s, too, will have an existing platform to enter the main Delhi market,” said Samir Jasuja, CEO of PropEquity.
But will it be easy for owners and residents to move out of the comfort of their old homes?
Only time will tell.