In a significant development for Mumbai's real estate landscape, Kalpataru Ltd has secured the rights to redevelop a sprawling housing society spanning nearly 4 acres in the prominent Lokhandwala locality of Andheri, a western suburb of the city. According to sources familiar with the matter, this move marks another stride for Kalpataru in its pursuit of multiple redevelopment projects across Mumbai's suburbs, signaling substantial revenue potential in the market.
The proposed redevelopment venture encompasses an estimated total development area exceeding 8 lakh sq ft, with a saleable area of 5 lakh sq ft, projecting revenue potential exceeding Rs 2,100 crore. Presently, the society comprises 12 residential buildings accommodating 290 apartments over 1.90 lakh sq ft. The redevelopment initiative aims to offer rehoused accommodations and deliver a total of 3 lakh sq ft of redeveloped space.
A development agreement has been finalized for the project, expected to reach completion within four years. Sources reveal that Kalpataru is devising plans for the project, emphasizing specific layouts and designs to optimize views, including those of the mangroves.
Earlier in June, it was reported that Kalpataru had acquired redevelopment rights for a housing society spanning nearly 6 acres in Borivali, intending to invest approximately Rs 700 crore in developing a residential project exceeding 700,000 sq ft in size.
The redevelopment of the Yoganand Co-Operative Housing Society, which currently houses nearly 400 residents, is anticipated to be completed within 3-4 years, generating revenue estimated at Rs 1,300 crore based on current business assumptions, as stated by property consultants.
Despite unanswered queries to Kalpataru at the time of reporting, the trajectory of realty developers in Mumbai reflects a pivot towards asset-light models, including joint ventures, to drive growth.
Redevelopment projects targeting aging housing societies remain integral to Mumbai's property market dynamics, as the city grapples with limited land availability.
In a bid to incentivize such redevelopment endeavors, the Maharashtra government announced in July that members of housing societies undergoing redevelopment will be exempted from paying stamp duty on allocated permanent accommodations, with only a nominal fee of Rs 100 levied. This move is poised to accelerate the revival of numerous dilapidated housing societies across key cities in the state.
Despite challenges posed by rising interest rates and property prices, the Mumbai property market continues its upward trajectory, setting new records in terms of property registrations and stamp duty revenue collection, buoyed primarily by luxury, premium, and mid-income segment properties.
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