Kanakia Spaces

As per the guidelines of the Cluster Redevelopment Policy in the State of Maharashtra, housing societies in Borivali Mumbai which are more than 50 years will be refurbished.

Kanakia Spaces Realty Pvt. Ltd. in Borivali, Mumbai has got the development rights of two societies which have existed since a long while back. From the records that CRE Matrix was able to retrieve on property registration records, the two development agreements (DA) executed had an agreement value of ₹208.53 crore.

Insights Of The Redevelopment Program.

Out of the records, the two housing societies which are more than 50 years old sit in Borivali, Mumbai, Govind Nagar area, and these two will be redeveloped as per the guidance of cluster redevelopment policy of the Maharashtra government. The transaction was conducted and recorded on 12 September 2024 and it was noted that stamp duty of ₹11.40 crore was remitted for the transaction.

The first structure is called Shree Mohan Chs Ltd, it rests on 2.02 acres of land and its occupiable area is 70,616 square feet. This will get an additional 36% of the RERA carpet area coming out to be around 96,038 and each unit shall have one parking slot.

Credit goes to the occupants of Shree Balwant Chs Ltd, located on a site of 1.31 Acre, apart from 51 parking prospects, they will enjoy however 45 % more area than the existing carpet area of 55,869. The said rate was applicable to all the residents of either of the two older buildings during the renovation period, ₹60 was paid per square foot, per month.

As provided by the agreement for development, the amortization of the expenses related to the renovation works of the assuming developing of an existing structure shall occurs. Rehabilitation of the existing structures will also be done within 36 calendar months and the project saleable component will be completed and occupation certificate (OC) full and obtained in 66 calendar months.

What Is Term Redevelopment?

Redevelopment is a more general tendency that applies to a bunch of old development mainly from 2s to 7s properties in Mumbai, Maharashtra and other similar States in current days. Rebuilding of the housing complexes crosses out the existing building and a bigger and better building is put up in line with the rules.

With respect to the redevelopment model, it is the owners of the historic properties who the inhabitants whom live in them enter into a development agreement with a developer.

The developer will make certain to each of those such owners of apartments, an additional area after reconstruction. So, developers could sell more residences with higher market prices than the current market price by covering the remaining potential of the plot (total FSI available) effective measure by means of construction of new anchors in the plot.

So, in order to be clear, let’s illustrate that with an example. If for instance, a five-story building consists of 50 apartments that are 450 square feet each the builder will sign contracts with the 50 apartment owners assuring them a 500 square feet apartment in the new building. The developer, instead, may decide to construct 100 units of 500 square feet apartments and sell 50 of them to the homeowners making profit out of it.

What Is Cluster Redevelopment?

A cluster redevelopment policy means when many small buildings or plots are taken up separately and then combined and redeveloped as one single whole project. Under this provision, the state government of Maharashtra gives benefits to developers such as increase in FSI provided they preserve the antiquities of the city of Mumbai.

In the same vein, the government of Maharashtra also made it known that real estate developers would waive up to 50% of the premium for a year as part of the Mumbai cluster development strategy which was announced in May 2023. This measure is mooted to help the restoration of the ancient buildings in the city.

Other Redevelopment Deals in the Mumbai Real Estate Market.

The Macrotech real estate developer, which accepts the brand under Lodha Group, had signed development pact for construction in free sale portion of the slum rehabilitation scheme in the Worli region of Mumbai in monrgh 2023. As per per documents obtained by real estate data analytics firm CRE Matrix, the total value of the agreement has been pegged at ₹359.48 crore.

Many other developers – Puravankara, Ajmera, Rustomjee Group And MICL etc – are working on the restoration of the older buildings in the city.

Conclusion

The Rs 208 crore contract bagged by Kanakia Spaces Realty for remodeling of two, 2 storied structures located as Borivali building is the most recent development in Mumbai’s real estate markets. This is more of a project which aims to elevate the living standards of the local populace, but also underlines the rising demand for new launch projects within Mumbai. Such initiatives to redevelop properties within the city will be critical in addressing the problem of lack of adequate housing and improving the city’s infrastructure as Mumbai continues to change. Therefore residents can expect a re-imagined environment that integrates modern living with the illustrious history of the city because of Kanakia’s commitment to excellence and innovation.

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