
Real estate company Kanakia Spaces Realty Pvt Ltd is planning to redevelop two old complexes of housing society in Borivali, Mumbai and the deal was signed for ₹208.53 crore. These structures are housing structures that are more than fifty years old will undergo redevelopment under Maharashtra’s Cluster Redevelopment Programme.
Key Details of the Redevelopment Deal
The redevelopment will take place in the Govind Nagar area of Borivali. The two housing societies involved are:
1. Shree Mohan CHS Ltd: Spread over 2.02 acres with a current area of 70,616 sq. ft. Residents will get 36% more space in the refurbished building, with each apartment receiving a parking spot. The total RERA carpet area will be 96,038 sq. ft.
2. Shree Balwant CHS Ltd: Covering 1.31 acres with a current carpet area of 55,869 sq. ft., this society will get 45% more space, and 51 parking spots will be available. Residents will also receive ₹60 per sq. ft. as compensation during the renovation.
The project is expected to be completed in 36 months, with the saleable component and occupancy certificate (OC) finalized in 66 months.
This process has two stages;
the old buildings are brought down and new ones are built then. This is typical to older buildings in Mumbai where buildings with over 50 years are most affected by the problem. In such projects, developers enter into contracts with residents promising to lease newly constructed and larger apartments after the reconstruction exercise.
For instance, if there is a 5-storied building with 50 apartments each sized 450 sq.ft, the developer may reconstruct it with 100 apartments, each 500 sq. ft, the residents get better houses and the rest unsold ones can be sold by the developer.
What is Cluster Redevelopment?
Cluster redevelopment involves combinining a number of old buildings into one project. Developers earn privileges from the government of Maharashtra, comprising of FSI and other permissions. In Mumbai also in May 2023 the government also starts a policy following the Mumbai Cluster Development Program Rule which enables developers to get up to 50% of the premium waived.
Generally, there are several other redevelopment projects undertaken in Mumbai among them being
Kanakia’s deal is consistent with mass housing instructions, which have become more prevalent in Mumbai over the last few years. Other developers involved in similar projects are Lodha Group, Puravankara, Ajmera and Rustomjee. For instance, Lodha Group entered into ₹ 359.48 crores worth slum redevelopment agreement with Worli, Mumbai in October, 2023.
Conclusion
In addition it struck a ₹208 crore redevelopment agreement with Kanakia for maintaining and constructing new Borivali look is a step in reshaping Mumbai’s real estate. This project will not only improve living conditions but also address the city’s growing demand for modern housing. With initiatives like these, Mumbai’s infrastructure will continue to evolve while preserving its cultural heritage.
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