With land parcels becoming low in supply in urbanised pockets throughout the country, builders and developers are looking towards older projects, with a view of bringing new life to them. But this is not to be done through conducting general repairs on the building or complex. The aim is to tear down the original construction in its entirety, and build a new, evolved project in its place. This process is known as redevelopment, and is already a familiar phenomenon in the Mumbai real estate setting, which is slowly becoming prominent in other metro cities across the nation, like Delhi, Bengaluru and more.
Everything in the world has a definite shelf-life, even buildings. A redevelopment project, under the right circumstances can be a good win-win situation between the residents and the builder. It gives the builder a new project to add to their portfolio, and in most cases, through the project, the extra homes that are built can be sold by them, thus increasing revenue. For the residents, it is a chance to get a new home, without having to compromise on their neighbourhood, and other surrounding elements that are familiar to them. Along with this, through redevelopment, residents also gain access to a new set of amenities like swimming pool, gym, and updated security systems, which previously may have been unavailable in their complex.
While redevelopment sounds like a good deal to most, there are a number of factors that should be considered carefully, in order to avoid disappointment. Redevelopment projects can be tricky, as there are many crucial elements that one has to be vigilant about. Trust is an extremely important factor in this transaction, as these projects involve the life-savings of more than one person. Some of the elements that one should pay attention to during redevelopment are as follows:
Suitability for redevelopment:
For a complex or building to go into redevelopment there are a few criterions that need to be taken care of. Firstly, the complex needs to be more than twenty five years old in order to qualify for redevelopment. It also needs to be declared as dilapidated by the builder-in-charge and the process can only take place when more than 75% of the residents agree on redevelopment.
Finding the right builder:
The builder is the most important element of the redevelopment process, which is why it is extremely critical to find someone you can trust. Thus, research about the builder must be done in advance, revealing the strength of their brand, reviews from previous collaborators, records of cost and time overruns, previous violation of regulations and legalities, and more. Redeveloping a property is a time and money consuming task, and the process put forth by the builder needs to be transparent and easily understood by all the residents.
While RERA and Benami Property Act are helping in bringing transparency to property transactions, there are still a number of malpractices that take place in the real estate sector. It is advisable for the residents to have a legal counsel on their side, who can help them navigate through the process in an orderly fashion and avoid pitfalls.
In every redevelopment project, the builder in charge is liable to provide alternative accommodation to every resident, while their homes are under construction. This is something that many builders skimp on, which is why residents must push the builder to show the alternate accommodation facilities to them, before getting into business.
Getting the right agreement with the builder:
The agreement document is made between the builder and the residents of the property. To avoid any issues, the residents should make sure that the document clearly specifies the obligations and expectations of the builder and the society members as well as the penalty in case of breach of the contract by either party involved.
Redevelopment is a long, tedious process that can bring out amazing results for both builders and residents. It is a process that should be pursued when properties start to go beyond their shelf-life, for the safety of all those who live there. But it is equally important to be careful during this time, which is why; trust is the most important factor when it comes to redevelopment.