By Varun Singh

Finally the government of Maharashtra has shown some spine.

The government recently came out with a government resolution which talks about BDD chawl Redevelopment.

The GR dated October 14, has spoken exhaustively about disputed properties in the chawls of BDD.

There are many disputed properties where the original tenant of the tenement in BDD chawl had died and the legal heirs where in dispute.

According to the GR, MHADA had raised this issue several times after which the government had to take a decision.

There is a fight on several properties between the legal heirs post the demise of the original tenant.

The GR states that in most cases the legal heirs that are disputing do not cooperate because of which transferring the property in one person’s name becomes an issue.

The government of Maharashtra has undertaken the redevelopment of BDD chawl across three important locations in Mumbai city.

These locations are Naigaon, NM Joshi Marg, and Worli.

Private corporate contractors have been appointed for the redevelopment of these BDD chawl.

Paying heed to the demand of Mhada the government has now clearly stated that the disputed property will be transferred in the name of the director of BDD.

This transfer will be till the time the dispute is settled and a clear legal heir is declared for the property in dispute.

While the property in dispute is being transferred in the name of director, BDD the names of the original tenant and the legal heirs shall be mentioned too.

This will mean that till the time the property dispute isn’t settled the legal heirs will not be able to occupy the disputed property.

Square feat India’s take:
This decision is a welcome step when it comes to redevelopment projects this should be implemented in other projects too, as property disputes issue delays the property redevelopment. This will make the disputing parties come together and solve the issues at the earliest and will enable the redevelopment.

Also Read: BDD Naigaon Back On Track With L&T

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By Anuj Puri

Towards the beginning of the pandemic, redevelopment in Mumbai had switched to the slow lane. Lack of capital and construction manpower and a seriously compromised construction materials pipeline were only one side of the problem. Another dampener was the fact that government offices were functioning erratically at best – and redevelopment in a city like Mumbai required the granting of countless permissions and clearances.

Of late, with all these bottlenecks opening up once more, redevelopment projects in Mumbai may begin picking up pace again. There are no real alternatives – the biggest problem for real estate development in Mumbai is land scarcity. There are very few opportunities for greenfield developments in the more valuable city centre areas. As such, redevelopment projects are often the only option for developers keen to have projects in such areas, where demand exceeds supply.

Different Types of Redevelopment

Not all redevelopment opportunities are created equal. There are basically three kinds of regular redevelopment models – slum redevelopment, cluster redevelopment, and redevelopment of four or five or even one old housing societies. Of these, most developers would prefer the kind involving old societies since the original owners are in manageable numbers, and it is easier to get a consensus.

However, these are not the meatiest redevelopment opportunities in Mumbai. In fact, industrial-to-residential redevelopments are far more lucrative. Here, there are relatively fewer stakeholders involved, the proposition is more or less straightforward, and the redevelopment can yield a sizeable number of residential units. Also, many such industrial units are debt-ridden and may therefore be available on distress sale directly from the financiers. In Mumbai, a good example of such industrial-to-residential redevelopment involves defunct mill premises.

Cluster redevelopments, on the other hand, are a lot more complicated because larger numbers of stakeholders whose buy-in needs to be obtained are involved.

The hardest and, in most cases, the least preferred variant is slum redevelopment. SRA projects involve countless numbers of stakeholders and government departments, apart from often vested political interests.

At any given time, redevelopment is a big deal in a metropolitan city hemmed in by the sea on three sides. The acute shortage of available land in the core parts of Mumbai has compelled the city to expand Northwards into adjoining districts of Navi Mumbai, Thane, and Raigad, and the peripheral suburban locations along the central and western rail network.

Obviously, the most lucrative redevelopments happen in the most valuable central areas where land prices are astronomical and profit margins huge. Redevelopments in the suburbs are far less attractive, and they don’t need it as much as the central areas.

In value terms, the division of the units from redevelopments is usually 30-40% towards the original owners, with the remaining 60-70% being available for free sale to the developer. This can vary widely according to the size of the undertaking. Redevelopments attract TDR and FSI benefits; however, the real value for developers is the location.

Currently, large developers involved in Mumbai redevelopment projects include names like S Raheja Realty and Kolte-Patil Developers. Many small and local developers are engaged in society redevelopments.

Also Read: Arun Gawli’s Dagdi Chawl Up For Redevelopment

The Dharavi Redevelopment Project

Talked about for years with no progress on the ground, the Dharavi slum redevelopment project falls in a prime locality between BKC and the Lower Parel. If the state government, town planning authorities and developers ever do manage to cut through the massive Gordian Knot that has this project tied up, it will result in a massive supply infusion.

Residential projects there will naturally cater to high-end property buyers. With the applicable FSI there, there will be enough left for luxury housing projects after the rehabilitation of existing hutments. With an FSI of 4 instead of the usual SRA ceiling of 2.5, the Dharavi redevelopment project can indeed be a truly world-class development – and extremely lucrative for all involved stakeholders.

In the redevelopment plans that have been submitted as of date, Dharavi has been broken down into ten distinct sectors, each to be tackled by selected developers. This will mean that the developers would need to consider the current market for retail, commercial and residential development, and also the usage mix of the other sectors. The involved developers will have to study each catchment by its own merits, based on their own market studies and their own business models.

When the Dharavi redevelopment project finally gets underway, the five identified sectors – at an average of 70 acres each – are likely to feature mixed developments. The time frame for completion will probably be between 8-10 years. The property prices in and around Dharavi in areas such as Sion, Chembur, etc. are currently around INR 25,000 – 30,000 per sq ft and once the Dharavi redevelopment project completes, property rates could easily see a 30-40% upside as lot of new supply will be added in the high-demand market.

In terms of residential and commercial space, this particular slum rehabilitation project will yield extremely high-quality products. Because of this, they will carry an additional premium, apart from the premium attached to the location. It will certainly set new benchmarks in Indian real estate, but it cannot be compared to anything past or present.

Dharavi’s redevelopment will be a one-off thing – something that happens only every 50 years or so in any particular city. As a result, nothing compares to it on the domestic level. Other major urban rejuvenation drives have taken place in countries like Singapore; however, these are purely urban rejuvenation projects and have nothing to do with slum redevelopment.

The Dharavi redevelopment project would also create waves in the retail sector. Apart from the favourable development mix, Dharavi has a sufficient population in the SEC ‘B’ and ‘C’ sectors that use it as a launchpad to better lifestyles. This population component will definitely be a tailor-made market for value retail in the form of hypermarkets and discount stores.

At the same time, on Dharavi’s peripheries, Dadar, Wadala, Bandra, Ghatkopar, Sion, and Chembur will also contribute to Dharavi’s advantage, and vice versa.

Also Read: Dharavi Redevelopment Hasn’t Moved Much, But These Many Crore Already Spent

The BDD Chawls Redevelopment Project

While Dharavi’s redevelopment is still more or less science fiction as of now, other redevelopment projects in Mumbai are happening in the here and now. For instance, the redevelopment of the Bombay Development Department (BDD) chawls is now underway. It has been long due as the structures are in a precarious condition and are unsafe for occupancy.

Currently, there are over 195 such tenements spread across 87 acres of prime South Mumbai in Worli, Naigaon, and Parel. Worli currently has the highest share of such structures, covering an area of 60 acres and houses over 12,000 families. These dilapidated structures once housed migrant mill workers and now occupy prime real estate locations in the city.

Redevelopment at such a scale – in prime South Mumbai locations – will free up precious land and give a genuine fillip to the real estate sector in the city. South Central Mumbai currently accounts for 1-5% of the total housing supply in Mumbai and is primarily driven by the luxury and ultra-luxury segments. Unlocking large land parcels will open new development avenues in the region, enabling the growth of the real estate sector across various asset classes.

The prevailing prices in these prime locations of South Mumbai are between INR 35,000-40,000 per sq ft, particularly in the micro-markets of Worli and Lower Parel. Prices here have remained stable for over a year despite the rise in input costs. However, the infusion of new supply at such a magnitude will probably cause some downward ripples on the pricing front.

The BDD chawls redevelopment will first focus on the rehabilitation of the existing residents, apart from creating free-sale stock. The share of free-sale stock, when compared to the total volume and cost of development, is not significant and will probably not impact real estate developments and prices in the area.

Also Read: BDD Naigaon Back On Track With L&T

What About Affordable Housing?

Over the last few years, most of the supply in MMR has been in the affordable segment – in fact, 30-44% of all new housing in MMR has been in this category. Almost all of this new affordable supply has come up in the suburbs and peripheral regions – none in the core parts of the city.

In the post-pandemic period, there is a noticeable shift towards mid-segment housing as residential demand now favours more functional homes which can accommodate WFH and e-schooling in times of such disruptions. While the continued migration of workforce across various socio-economic strata does create a need for housing in Mumbai, we are unlikely to see much – if any – budget housing resulting from Mumbai’s redevelopment projects.

Anuj Puri, is the Chairman of ANAROCK Property Consultants, all views expressed in the above article belongs to him.

Also Read: In 2021, Housing Sales in Top 7 cities expected to rise by 30% against 2020

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By Varun Singh

MHADA’s troubles in regards to redevelopment of Naigaon BDD Chawl has increased further.

The ambitious project has been in controversy since, the news of L&T opting out of the project broke in August.

Also Read: Has L&T Pulled Out Of Naigaon BDD Redevelopment?

At Naigaon BDD there are a total of 42 Chawls, comprising of a total 9869 tenants. The funds required for the redevelopment is Rs 2,800 crore +.

According to officials in MHADA, Naigaon BDD project has been discussed at length. At the same time, several discussions to convince L&T to continue with the project took place.

But it appears several round of meetings have yielded no result and now MHADA is aiming at writing to the empowered state committee.

People close to the development say that MHADA shall soon write to the state government to tell them that talks with L&T hasn’t given them the expected results.

“The letter will be on the lines that fresh tenders for Naigaon BDD chawl redevelopment be floated so that the project moves ahead.”

A Source close to the development

When contacted Anil Diggikar, Vice President and CEO, MHADA he said the letter hasn’t yet been written but said yes when asked whether a letter on these lines is being written.

The fate of Naigaon BDD matches with that of Dharavi to a large extent. Dharavi Redevelopment has seen three tenders but nothing much happened.

Recently the state cabinet cancelled the tender for Dharavi that was floated by the Devendra Fadnavis led government in 2018.

Also Read: Dharavi Redevelopment Tender Cancelled

MHADA in August as per reports received a letter from construction giant L&T expressing their desire to discontinue with Naigaon BDD redevelopment.

Post which there were several meetings held with the construction company, but things didn’t work out.

It is believed that L&T is unhappy that in spite of it receiving the contract three years ago, the work wasn’t moving ahead.

As per the work order issued by MHADA on April 17, 2017, L&T had made a security deposit towards performance security via bank guarantees worth Rs 145.14 crore.

During the Devendra Fadnavis government, tenders were floated for all the three BDD chawl redevelopment. These are NM Joshi, Worli and Naigaon.

All this will delay the dreams of tenants wanting to move into a spacious apartments, from their compact ones right now.

Each tenant post redevelopment is to get a 2 BHK apartment measuring 500 sq ft in lieu of the current one room that they reside in.

The redeveloped apartments will have two bathrooms, while currently they share common bathroom located at every floor.

 Also Read: In Ramrajya Builder & Homebuyer Reach Settlement

The post Naigaon BDD May See Fresh Tenders appeared first on Square Feat India.

By Varun Singh

The fate of redevelopment of BDD chawl at Naigaon now lies in the hands of state government.

According to officials from MHADA, L&T seems to be firm on its decision to not proceed with the BDD chawl redevelopment at Naigaon.

At Naigaon, BDD there are a total of 42 Chawls, comprising of a total 9869 tenants. The funds required for the redevelopment is Rs 2,800 crore +.

MHADA in August as per reports received a letter from construction giant L&T expressing their desire to discontinue with Naigaon BDD redevelopment.

Post which there were several meetings held with the construction company, but things didn’t work out.

When asked Yogesh Mhase, Chief Officer, Mumbai Board, MHADA what was the next step as L&T has decided to no proceed, he said, “Will have to go to Government.”

“We will have to go to government.”

Yogesh Mhase, Chief Officer, MHADA’s Mumbai Board.

It is believed that L&T is unhappy that in spite of it receiving the contract three years ago, the work wasn’t moving ahead.

As per the work order issued by MHADA on April 17, 2017, L&T had made a security deposit towards performance security via bank guarantees worth Rs 145.14 crore.

During the Devendra Fadanvis led government, the tenders were floated for all the three BDD chawl redevelopment. These are NM Joshi, Worli and Naigaon.

This move will delay the dreams of tenants wanting to move into a spacious apartments, from their compact ones right now.

Each tenant post redevelopment is to get a 2 BHK apartment measuring 500 sq ft in lieu of the current one room that they reside in.

The redeveloped apartments will have two bathrooms, while currently they share common bathroom located at every floor. 

A detailed email sent to L&T seeking their comment got us no response.

If government fails to convince L&T, the process of BDD chawl redevelopment at this site will further delay.

Also Read: Top Firm Sells Worli Flat For Rs 6.14 Cr That It Bought For Rs 9.6 Cr Only 9 Months Ago

The post Naigaon BDD’s Fate Now In Hands Of State Govt appeared first on Square Feat India.

By Varun Singh

What is the full form of BDD Chawls? What was the main purpose of these BDD chawls? Who constructed it?

There are many questions of which answers many seek, when they hear the word BDD Chawls.

Let’s answer some of them, the full form of BDD chawls is Bombay Development Directorate Chawls. They were originally built as jails for prisoners of the World War. Yes got it right these jails were built by the British.

But to know about the history of BDD soon you may not be dependent on a mere google search.

The reason being that there will be a Cultural Heritage Museum that will built at BDD Worli.

BDD chawls are a synonym to the middle class population’s history of Mumbai, The chawls have a rich history and a culture which can be termed as the melting pot of different identities still thrives in Central Mumbai.

To start with history, lets talk about the presence of BDD chawls in Mumbai. The most important aspect of BDD chawls is, that it is spread over 92 acre of prime land in Mumbai. There are a total of 195 chawls in Worli, Naigaon and NM Joshi Marg. There also exists few BDD chawls in Sewree.

Currently MHADA is redeveloping the BDD chawls in the three locations.

N M Joshi Marg, Lower Parel

• Chawls: 32
• Tenants: 2,560
• Funds: Rs 2,460 crore+
• Tender Won by: Shapoorij Pallonji 

Naigaon

• Chawls: 42
• Tenants: 9,869
• Funds required: Rs2,800+ crore
• Tender won by: L&T

Worli: 

• Chawls: 121
• Tenants: 9,689
• Funds Required: Rs 10,700 crore
• Tender Won by: Tata Capacite 

Also Read: Sneak peak of BDD Worli homes post redevelopment

According to a senior MHADA official associated with the BDD chawl redevelopment, the museum at Worli will showcase the history of the chawls.

Datta Ishwalkar, noted mill union leader of Mumbai says, “The construction of a museum will be a tribute to the working class of the city. From barracks meant from prisoners, the working class made the BDD chawls as their homes.”

BDD chawls came post 1920, and as mentioned it was meant to keep prisoners. However, later, the chawls also was used to keep activists of the freedom struggle.

During the period close to Independence, many workers who came to the city of Mumbai were asked to reside here.

The British would collect rent from them, and after India achieve Independence, the Bombay Development Directorate started collecting rent.

As time passed these chawls became the place where majority of mill workers who would work in central Mumbai started residing.

It’s a melting pot of several cultures, from Maharashtrians who form the majority, to Telugu speaking population and even Gujaratis and other communities reside here.

These buildings were known for its strength. However, with time they have started falling apart.

A few years ago, MHADA was assigned the authority to redevelop the chawls, while the residents who current reside in 160 sq ft homes will get 500 sq ft apartments, the current structures will be part of history.

Also Read: Corona impact: Many BDD tenants ready for transit

“For the future generation to know about BDD chawls and even for the residents, the museum will be a good source,” says Ishwalkar.

According to sources in MHADA, the museum will have pictures, and videos via which one will be able to relish the history of BDD chawls.

A consultant shall be appointed to study, the nitty gritty o the museum and will be built at Worli.

Recently one of the BDD chawl redevelopment at Naigaon was in trouble, after, Larsen & Torubo sent a letter to MHADA wanting to pull out from the redevelopment.

Talks have begun regarding retaining L&T at the Chief Minister Office level though.

Also Read: Has L&T Pulled Out Of Naigaon BDD Redevelopment?

The post From Jail To Homes: History Of BDD Chawls To Be Preserved In A Museum appeared first on Square Feat India.

By Varun Singh

For the last two days officials at MHADA are busy going through paper work related to Naigon BDD Chawl Redevelopment.

The reason being, that MHADA apparently received a letter from construction giant L&T expressing their desire to discontinue with Naigaon BDD redevelopment.

It is believed that L&T is unhappy that in spite of it receiving the contract three years ago, the work wasn’t moving ahead.

A senior MHADA official associated with the BDD Chawl redevelopment confirmed that the letter has been received by them.

He said, “You already know intentions of people opposing project implementation process. What more can I say?”

Meanwhile, MHADA is trying to find ways how it can convince L&T to stay back. “The conditions in the contract could be one of the ways to make L&T reconsider their decision,” said an officer.

As per the work order issued by MHADA on April 17, 2017, L&T had made a security deposit towards performance security via bank guarantees worth Rs 145.14 crore.

The project is to be completed within seven years time. However, on Monday it is said that the firm notified MHADA its intent to not go ahead with the BDD Redevelopment project at Naigaon.

At Naigaon, BDD there are a total of 42 Chawls, comprising of a total 9869 tenants. The funds required for the redevelopment is Rs 2,800 crore +.

Messages sent to MHADA Vice President Milind Mhaiskar and Mumbai Board Chief Office Yogesh Mhase got us no response.

A detailed email sent to L&T seeking its comment to confirm about the letter got us no response.

During the Devendra Fadanvis led government, the tenders were floated for all the three BDD chawl redevelopment.

Each tenant post redevelopment is to get a 2 BHK apartment measuring 500 sq ft in lieu of the current one room that they reside in.

The redeveloped apartments will have two bathrooms, while currently they share common bathroom located at every floor.

Local MLA from the area Kalidas Kolambkar, said, “For us what matters is that the redevelopment should be of superior quality and under MHADA’s supervision.”

Also Read: Top Firm Sells Worli Flat For Rs 6.14 Cr That It Bought For Rs 9.6 Cr Only 9 Months Ago

The post Has L&T Pulled Out Of Naigaon BDD Redevelopment? appeared first on Square Feat India.