Real estate developer Paradigm Realty has recently entered into agreements to redevelop 11 housing societies in Mumbai’s Bandra and Kandivali suburbs. These projects, located in Bandra’s Pali Hill and Carter Road areas, as well as Kandivali’s Mahavir Nagar, have a combined development potential of over 2.8 million square feet. The project is expected to generate a gross consolidated revenue of approximately Rs 4,500 crore.
Development Potential and Revenue: The projects in Pali Hill and Carter Road are spread over half an acre each, with development potentials of 1.5 lakh square feet and 1.6 lakh square feet, respectively. The estimated revenues from these projects are Rs 500 crore. The Mahavir Nagar project, on the other hand, has a development potential of over 2.5 million square feet. The free-sale RERA carpet area of up to 1 million square feet of the Mahavir Nagar project holds a gross development value of nearly Rs 3,500 crore.
Luxury Gated Projects: Paradigm Realty plans to develop luxury gated projects in all three layouts. The financing for these projects will be done through internal accruals, construction finance, equity, and pre-sales. The developer is currently in the process of seeking approvals for the development plans, which are expected in the next few months. The launch of the projects is scheduled for the fourth quarter of this financial year.
Stamp Duty and Previous Projects: In the registration of the redevelopment agreement with nine housing societies in Kandivali’s Mahavir Nagar, Paradigm Realty paid an amount of Rs 10 crore as stamp duty. This is the fifth project being undertaken by the developer in the western suburbs of Mumbai. The company has already completed over 1,200 apartments in Kandivali and Borivali suburbs, bringing its total completed apartments to 3,000 in Mumbai’s western suburbs in the past five years.
Focus on Asset-Light Models: Many realty developers have been adopting asset-light models such as joint development and development management agreements in recent years. The redevelopment of old housing societies and rehabilitation projects play a significant role in Mumbai’s property market due to a shortage of vacant land parcels in the city. The government of Maharashtra has also introduced measures to promote the redevelopment of old housing societies, such as reducing stamp duty charges for members of such societies.
Conclusion: The decision by Paradigm Realty to redevelop 11 societies in Mumbai’s Bandra and Kandivali suburbs highlights the ongoing trend of redevelopment projects in the city. With a significant development potential of over 2.8 million square feet and an estimated revenue of Rs 4,500 crore, these projects are expected to contribute to the overall growth and development of Mumbai’s real estate sector. The luxury gated projects planned by Paradigm Realty further signify the demand for high-end residential properties in the city.
