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When Old Buildings Cannot Redevelop - Challenges in South Mumbai's Real Estate

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When Old Buildings Cannot Redevelop - Challenges in South Mumbai's Real Estate

When Old Buildings Cannot Redevelop - Challenges in South Mumbai's Real Estate

When Old Buildings Cannot Redevelop - Challenges in South Mumbai's Real Estate

Older buildings in South Mumbai that lack scope for redevelopment face a range of outcomes influenced by structural conditions, legal frameworks, and market demand. Here’s a detailed breakdown of possibilities:

1. Structural Repairs and Maintenance

  • Why: Buildings that cannot be redeveloped due to space or legal constraints might undergo extensive repairs and strengthening works.
  • Outcome: This can extend the building's life for several decades, but periodic repairs will be necessary.
  • Challenges: Higher maintenance costs and resistance from occupants to contribute financially.

2. Cluster Redevelopment Initiatives

  • Why: For buildings with limited individual redevelopment potential, cluster redevelopment can combine several old buildings or plots into one large redevelopment project.
  • Outcome: Developers are incentivized to create modern infrastructure while providing residents with new homes.
  • Example: Parts of Girgaon and Kalbadevi have seen such efforts under Mumbai’s Cluster Redevelopment Policy.

3. Change of Use for Commercial Purposes

  • Why: Buildings unable to attract residential redevelopment might be converted for commercial purposes like offices, warehouses, or boutique hotels.
  • Outcome: This can generate better returns for landlords or societies.
  • Example: South Mumbai’s historic buildings have already seen adaptations for cafes, co-working spaces, and small retail.

4. Dilapidated Structures May Be Condemned

  • Why: If a building is structurally unsound and cannot be redeveloped or repaired, municipal authorities may deem it unsafe.
  • Outcome: Residents are evacuated, and buildings are demolished. The land may remain vacant for years until stakeholders resolve redevelopment issues.

5. Tenancy-driven Stalemates

  • Why: In many old buildings, existing tenants (under rent control laws) pay negligible rents. This creates resistance towards redevelopment and economic unviability for developers.
  • Outcome: Buildings deteriorate further, turning into "camps" for legal disputes and disrepair.
  • Challenge: Government intervention may be required to resolve disputes and incentivize redevelopment.

6. Heritage Restoration

  • Why: Buildings classified as heritage structures might be preserved through government or private funds.
  • Outcome: Conservation efforts retain architectural legacy while converting parts into tourist attractions or adaptive reuse projects.
  • Example: Iconic heritage buildings like Ballard Estate and Fort are models for restoration.

7. Government Policies and Intervention

  • Why: The Maharashtra government is increasingly focused on policies like the MHADA repair and redevelopment schemes or Slum Rehabilitation Authority (SRA) to rejuvenate older structures.
  • Outcome: Incentives such as additional FSI (Floor Space Index) may be offered to make redevelopment financially viable.

Summary

For old buildings in South Mumbai that lack redevelopment scope:

  1. Maintenance or repairs will become the first solution.
  2. Cluster redevelopment or collective initiatives might offer a lifeline.
  3. Heritage restoration could preserve certain iconic structures.
  4. Buildings beyond repair may face demolition, leaving stakeholders in limbo.

Ultimately, a combination of government policies, cooperative efforts from owners, and market forces will decide their fate.

Picture Courtesy: Pranshu Dubey - Pixeldo


 
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About the author
Sandeep Sadh

About Sandeep Sadh

Sandeep Sadh has been in the real estate business since 1993 in Mumbai. He has expertise in Buying, Selling, Leasing properties in Mumbai and a deep understanding of legal and tax related matters due to his experience.

Summary

Over the years, he has experienced the City's growth. He has been a columnist in the Times of India with numerous articles, which bring about a clear picture of the real estate market in Mumbai. He is a regular on NDTV, CNBC, ET Now Real Estate and Zee News, giving his experienced quotes as and when required.

Sandeep Sadh has used information and technology since the year 1998 and now what people call it Prop Tech to cater to the needs of Home Buyer, Seller, Investor and Corporates, HNI and NRI looking to Buy/Sell or Lease their properties in the Mumbai Property Market.

Sandeep has a holistic experience of real estate be it Leasing an Apartment for your CEO in the most upmarket buildings, to enter into a long lease for your office in Mumbai in prime buildings or an Investment in good projects with a detailed analysis keeping in mind the Demand and Supply and other micro factors of the project/property.

Sandeep Sadh has developed a few websites like www.mumbaipropertyexchange.com, www.realestatemumbai.com, www.propi.in which augment the real estate consulting business.

Right from Investments in Primary Markets to Selling, leasing and specializing for NRI’s all over the world. He is an expert in NRI Home Buying and Selling and has a good understanding of the Income Tax laws pertaining to Selling a Property and Repatriating funds overseas or reinvesting based on Capital Gains etc.

Experience

  • Residential Leasing
  • Commercial Leasing
  • Residential Home Buying
  • Commercial Property Buying
  • Investment Properties with complete Property Management as your Real Estate Family office

While transacting in the above segments, he has complete experience and deep understanding of the paper work, his areas of expertise are :

  1. Drafting of the Leave and License Agreements
  2. MOU for Buying/Selling Properties
  3. Drafting Agreement for Sale
  4. Gift Deeds
  5. Computing of Capital Gains with current ready reckoner values
  6. Drafting of Supporting Power of Attorney.

As an add on Service, Sandeep Sadh has tied up with various Professionals like Lawyers and Chartered Accountants who add value in transacting and specially services for Non Resident Indians.

Application to Income Tax for Lower Tax Deduction Certificate – Through a qualified CA and keeping a grip on the traction so that the remittance back to Non Resident Indians after Selling the property is seamlessly transferred.

You can connect with Sandeep Sadh on ssadh@mumbaipropertyexchange.com

LinkedIn - https://www.linkedin.com/in/sandeepsadhmpe/

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