The trend of real estate redevelopment is poised to grow in Ahmedabad’s leading real estate developers.
Redevelopment, which refers to demolishing old buildings and undertaking development afresh, has been in vogue in cities like Mumbai for decades. Redevelopment allows for better utilization of land because of higher FSI, and some of its advantages are larger apartments, better amenities, higher resale value of property, proper parking space, and an improved fire safety system, among others. While redevelopment has also become popular in Ahmedabad.
“Redevelopment is a must for new projects to come up in the prime locations of Ahmedabad, where land is otherwise not available. Redevelopment is beneficial for all stakeholders and must be encouraged. That said, it is comparatively a new trend in Ahmedabad, and as with any new thing, it will take some time before it gets widely accepted,” says Veeraj Shah MD Aarinston Infrastructure.
With a view to spurring the redevelopment of old buildings, the state government July 2019 amended the rules for redevelopment, making the consent of only 75% of the members necessary instead of the 100% requirement earlier. “The rule to get the consent of 75% of the members for redevelopment was to make the process easier. “For the last two years, there was just too much uncertainty. Developers were willing to take up redevelopment projects despite the huge risks, but many societies withdrew from the agreements and decided to wait for the situation to return to normal. Now that the worst of the pandemic seems to be behind us, we are expecting a flurry of redevelopment projects in Ahmedabad,” Veeraj Shah.
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