Realty developer Kalpataru has secured two major redevelopment projects in Mumbai, covering nearly 7.5 acres of land. This significant move is expected to generate a revenue potential exceeding Rs 2,000 crore. The projects, located in the suburbs of Chembur and Goregaon, will involve the development of over 1.5 million square feet of residential space. Kalpataru aims to complete construction within 42 months from the start date, as outlined in the agreements reviewed by ET. The redevelopment projects have received approvals from existing housing society members, indicating strong local support. The first project involves the Suman Co-operative Housing Society, which spans five acres and currently consists of ten residential buildings. In contrast, the Goregaon site covers 2.5 acres and features eight residential buildings. Kalpataru has paid approximately Rs 27.60 crore in stamp duty for the registration of these agreements. The Suman Nagar development will comprise six towers, offering 350 apartments, while the Goregaon project will consist of three towers with a total of 200 apartments. Established in 1988, Kalpataru has a robust portfolio of redevelopment projects across Mumbai, including completed works in Byculla, Sion, and Juhu. With ongoing and upcoming projects in Matunga, Bandra, and Andheri, Kalpataru is well-positioned to capitalize on Mumbai’s pressing need for redevelopment in a land-constrained market.
Details of the Redevelopment Projects
The redevelopment initiatives by Kalpataru are particularly significant given the pressing need for housing in Mumbai. The Suman Co-operative Housing Society project will see a total of six towers constructed, comprising a carpet area share of over 4.20 lakh square feet. This development will provide a mix of amenities and living spaces, aiming to meet the growing demand for residential properties in the city. The Goregaon project, strategically located near Link Road and Bangur Nagar Metro station, will feature three towers with 18 floors each. With nearly 2 lakh square feet of carpet area designated for sale, this project is set to attract a considerable number of potential homeowners.
Both projects have been met with approvals from the existing members of the respective housing societies, which is essential in ensuring a smooth redevelopment process. The agreements indicate a collaborative effort between the developer and the local residents, fostering a sense of community ownership and involvement in the redevelopment process. This is particularly crucial in Mumbai, where residents often have deep-rooted ties to their neighborhoods. The redevelopment of old housing societies plays a vital role in addressing the housing crisis in the city, as available land parcels are becoming increasingly scarce.
Impact of Government Policies on Redevelopment
The recent policy changes by the Maharashtra government have further encouraged redevelopment initiatives across the state. In 2023, the government announced that members of housing societies undergoing redevelopment would not have to pay stamp duty on the allocated permanent accommodation. This policy significantly reduces the financial burden on residents, allowing them to pay only a nominal fee of Rs 100 as stamp duty. The principal agreement between the developer and the housing society will still incur stamp duty as per the conveyance. This change is expected to streamline the redevelopment process and incentivize more housing societies to consider redevelopment options.
Moreover, the ongoing buoyancy in the property market indicates a favorable environment for real estate development in Mumbai. The demand for new housing projects continues to rise, and developers are keen to meet this need. Kalpataru’s recent agreements exemplify the trend of transforming aged housing societies into modern residential complexes, which is becoming a key strategy for addressing the city’s housing shortages. As the redevelopment landscape evolves, it is crucial for developers to align their projects with the needs and expectations of the local communities they serve.
Kalpataru’s Legacy and Future Prospects
Kalpataru’s footprint in the Mumbai real estate market dates back to 1988, with a legacy of successfully completed redevelopment projects in key micro-markets. The company has established itself as a reliable developer with a keen understanding of the local market dynamics. Currently, Kalpataru has four ongoing redevelopment projects in Matunga, Bandra, and Santacruz, along with three forthcoming projects in Juhu, Borivali, and Andheri. This extensive portfolio positions the company to leverage the growing demand for residential properties in Mumbai.
With the recent agreements for the Suman Nagar and Goregaon redevelopment projects, Kalpataru is poised to contribute significantly to the revitalization of Mumbai’s housing landscape. As urbanization continues to shape the city’s demographics and housing needs, Kalpataru’s commitment to quality and community-focused developments will be essential in meeting the challenges ahead. The company’s ability to navigate the complexities of redevelopment agreements and maintain positive relationships with housing society members will be crucial for the successful execution of these projects.
