Realty sector set to gain from redevelopment

The city’s realty sector seems to be readying to shake off the effects of the slowdown. Five projects, each worth at least Rs 200 crores, which would free up 36 acres in the island city for redevelopment are to come up for clearance on Tuesday, reports Naresh Kamath.

The city’s realty sector seems to be readying to shake off the effects of the slowdown. Five projects, each worth at least Rs 200 crores, which would free up 36 acres in the island city for redevelopment are to come up for clearance on Tuesday.

HT Image

This is under the cluster redevelopment scheme, where the builder obtains the consent of the various stakeholders to redevelop properties spread over a minimum of 4,000 square metres.

The five projects proposed — in Lower Parel, Sewri, Parel, Mazgaon and Mahalaxmi (see box) — will come up before a high-powered committee headed by Municipal Commissioner Jairaj Phatak on Tuesday. If this committee, which includes representatives of the Brihanmumbai Municipal Corporation, the Maharashtra Housing and Area Development Authority, and the Traffic Police, clears the plan it will go the state government for final approval.

Talking to HT, Anuj Puri, Chairman and Country Head, Jones Lang LaSalle Meghraj, a leading consultancy firm, said the slowdown appeared to have been arrested. “There is money coming to the market from various firms which are confident about the future.'

The DB Realty Group wants to redevelop Turf Estate property at Mahalaxmi. It plans to construct a posh 15-storey tower to rehabilitate the 135 existing commercial tenants,” said Adil Patel, director, DB Realty. The project cost is more than Rs 200 crore.