Mumbai realty market to get a boost from city centre redevelopment initiatives

The Mumbai real estate market is witnessing slow but steady growth in recent times and there are several redevelopment projects on the anvil which can boost the realty sector in the city going forward. There are three big-ticket redevelopments ventures in central Mumbai, namely the 97 acre Bandra government colony, 520 acres in Dharavi and of course, 92 acres covered by BDD chawls across Naigaon, Worli, Sewri and Lower Parel. Chief Minister Devendra Fadnavis has reportedly undertaken the initiative to secure 87 acres of land owned by the railways for the Dharavi redevelopment venture. The chawls were set up back in the 1920s with the BDD (Bombay Development Directorate) building 195 in Worli, Lower Parel and Naigaon and another 12 in Sewri for housing migrant employees at cotton mills. Work has reportedly commenced for the Naigaon and Lower Parel projects with plans to build some buildings initially as transit accommodation for residents. 15, 000 original tenants will get 500 sq. ft. new homes and 68% of land will be allocated for settling these residents. The remainder will be opened for commercial usage. The costs are estimated at roughly Rs. 16, 000 crore although the areas will garner considerable investments in the future from mid-range homebuyers in Mumbai. An SPV (special purpose vehicle) will be established for Dharavi with an 80-20 private and government stake ratio. Dharavi cannot have vertical growth since it comes under the funnel zone of the International Airport in Mumbai. However, Dharavi can grow into a residential and business hub in the future post redevelopment. The Public Works Department (PWD) has also commenced working on a plot of 5 acres situated adjacent to the BKC (Bandra-Kurla Complex) in the government colony. 75% of prime land here could be opened up for development, thereby helping the State earn roughly Rs. 40, 000 crore. Worli is one of the hottest areas in Mumbai at the moment with premium residential projects such as Kumar Urban Couture, Lodha Codename Trinity and Neumec Interlude situated here.