BOMAN IRANI, MANAGING director of Rustomjee, calls it an "asset-light model" for Mumbai's real estate developers that offers a huge respite from an ever-increasing expenditure for land purchases. Irani should know as Rustomjee, which trades as Keystone Realtors, is the largest operator in redevelopment space.
Redevelopment will continue to serve as a key driver of growth...We are strategically positioned to capitalise on the current momentum," Irani said after declaring the company's second quarter results.
But local players like Rustomjee are up for some serious competition as property developers from across the country have warmed up to the idea in a city where real estate counts among the most expensive in the world. Mumbai is land-locked and land prices constitute 30 to 50% of the total project cost.
Both the scale and economics are added attractions. As per industry body CREDAI-MCHI, more than 25,000 buildings in the Mumbai Metropolitan Region (MMR) with an estimated value of ₹30,000 crore are qualified for redevelopment. As per Municipal Corporation of Greater Mumbai (MCGM) norms, any building that is over 30 years old is declared dilapidated by MCGM and can qualify for redevelopment.
"A lot of FSI (floor space index) is available to be consumed in old buildings. So a lot can be developed," said the chief financial officer of a real estate company which is doing redevelopment projects in Mumbai. FSI means permissible development allowed on a plot of land.
The CFO said it is a great preposition for the developer as no upfront payment is required. "If the whole project is of 2 million sq ft, you give 1 million and get the same for yourself," he said. Rajat Rastogi, CEO-West at Bengaluru-based Puravankara, agrees.
Bu hikaye Financial Express Mumbai dergisinin December 23, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Financial Express Mumbai dergisinin December 23, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Shyam Benegal cremated with full state honours
VETERAN FILMMAKER SHYAM Benegal, the pioneer of the parallel cinema movement in Indian cinema in the 1970s and 1980s, was cremated on Tuesday with full state honours and a three-gun salute.
Champions Trophy: India to play Pakistan on Feb 23
INDIA WILL PLAY all their matches of the Champions Trophy in Dubai with the marquee clash against arch-rivals Pakistan scheduled on February 23, the International Cricket Council (ICC) announced on Tuesday.
Net gains: Secured Virat, cautious Rohit gear up
INDIA GOT A chance to bat in the nets on fresher pitches on Tuesday, their last day of training as Christmas day is a rest day for them.
A middle-class meltdown
Economic shift, stagnating real income post Covid weigh on spending on daily items
EAM in US to boost bilateral ties
IN WHAT IS expected to be the first high-level contact between the incoming Trump 2.0 administration and the Indian government in its third term, external affairs Minister S Jaishankar is likely to meet the new Trump team in the US.
Uniting for greater good
COLLABORATIVE PHILANTHROPY is not a new idea.
IOC to invest ₹61K cr for Odisha project
NAPHTHA CRACKER PROJECT IN PARADIP
18% GST on used EV to be paid on seller's margin
A REGISTERED PERSON will have to pay an 18% Goods and Services Tax (GST) on sale of old and used vehicle only if the seller has earned a margin, which is if the selling price is higher than the depreciation adjusted cost price of the vehicle, official sources said.
Changing the lens can make a big difference
Why the campaign rocks: It's great to witness the growing number of gender-forward campaigns, each challenging outdated norm and fostering more inclusive, progressive narratives.
Road to relevance
How to craft a brand strategy that stands the test of time
