Redevelopment Project

in Navi Mumbai

Project Management
Kirti Naidu
Nikhil Golatkar
Shruti Gagangras
Shruti Kalkundre
Sanket Shetye
Unrestricted
 Contents

• What is redevelopment ?
• Redevelopment process
• Pre feasibility
• Feasibility study
• Case study Process – Project details
• Project financial feasibility
• Financial benefits to society
• Project timeline
• CPM implementation
• Advantages
• Challenges
• Conclusion
 Residential Building Redevelopment

What is redevelopment and why is it needed?

Redevelopment is process of re-construction of existing old building that benefits :

Existing society members : Developer : Society or City : Helps in

Construction new flats free external private developers creating new
of cost with additional with profit by utilising housing stock for
benefits such as new balance FSI for sale the city
amenities and extra carpet component
area
 Redevelopment Process

Structural Audit

Formation of Developing committee and

Developer entry.

Preparation of financial feasibility report.

Preparation of development agreement

Finalization of building plans

 Redevelopment Process

Obtaining the necessary permission.

Vacating the building

Demolition and reconstruction of building

Possession and occupation of building

 Pre-feasibility

Objective: To determine whether the project idea needs further investigation and what
aspects of the project are critical to its viability.

Scope: An overview of the project proposal is furnished. Complete details not

presented.

Information expected from Report: Location and site, Market survey,

implementation, Financial analysis, Project financing, Investment, Construction costs,
profitability.

Time Spent: Short duration ranging from one to two weeks.

Accuracy of Information Gathered: About 60% to 70% generally.

 Pre-feasibility

Initial Meeting with the society members to discuss project details and needs

Land and Project evaluation

• Zoning | Land Use
• Traffic and access points
• Sewage and water supply etc..

Competitive summary of new projects and similar existing redevelopment projects in the
vicinity

Market Analysis
• Age of demographic & target market
• Population of surrounding area and trends including projected growth
• Income statistics

Financial Analysis
• Revenue projections
• Budget Expenses
• Operating projections
 Feasibility Study Report

Objective: To determine the true profitability of the project and work on details.

Scope: Maximum coverage of the project proposal as decision is based on the economic
feasibility – like financial feasibility, commercial viability, organizational support, etc.

Information expected from Report: Studying existing building plans, consumed FSI,
carpet area of existing members & available TDR/ additional FSI benefits.

Time Spent: Short duration ranging from one to two months.

Cost Involvement: Minimal

Accuracy of Information Gathered: About 60% to 70% generally.

Case study – Redevelopment of G + 2 building

Location :Plot 162, Sector 4, Ulwe,

Navi Mumbai

Site: G+2 Residential Building

Plot Area : 380 sqm

 Project Details
Plot Area (380 sq. m) 4090 sq. ft

Existing Built Up Area 3500 sq. ft

Number of existing tenements 10 flats

Existing carpet area for 1RK 225 sq. ft

Number of floors G+2

 Redevelopment Proposal

Plot Area (380 sq. m) 4090 sq. ft

Proposed (BUA) 10,814 sq. ft

Proposed Tenements 22 flats

Proposed carpet area for
300 sq. ft
existing members
Number of floors G+ 4
Redevelopment Proposal
Sell price sheet
 A. Project Construction Cost

Built up Area and FSI calculations

Description Area (sqft)

Plot area of existing building (380 sq. m) 4090

Built up Area (BUA) = Plot area x FSI 4090 x 1.5 = 6135 FSI available 1.5

Total BUA = BUA x loading 10,814 Loading involves additional spaces for
6135 x 1.66 lobby, staircase, lift, terrace. Whose cost
builder cannot take from the homebuyers

Saleable area x Construction cost per sq. ft = Total construction cost

10,814 x 1350 = 1,45,98,900

(Including labour and
material) i.e. 1.459 crore
 Total Project Expenses
Sr. Rate per sq. ft Rate per sq. ft Area (sq. ft) Cost (INR)
No.
A. Construction Cost 1350 10,814 1,45,98,900
B. Demolition Cost 250 3500 8,75,000

C. Developer to tenant

Rent 5000 24 months x 10 flats 12,00,000

Deposit 15000 10 flats 1,50,000

Brokerage 5000 10 flats 50,000

Sub Total 14,00,000

D. Corpus fund 30,00,000

E. Sanctioning, Project Approval, 150 10,814 16,22,100

RERA registration

F. Architect Fees 20 10,814 2,16,280

G. Structural Engineer Fees 5 10,814 54,070

Grand Total 2,17,66,350

 Project Sale
Break up of total BUA i.e. 10,814
Description Number of Built Up Area Total area
units (flats) (sqft) (sqft)

Existing society members (Rehab component 10 535* 5350

)

New Flats 1RK 4 300 1200

New Flats 1BHK 8 535 4280

*Consider a G+2 building having 10 1RK flats of 250 sq. ft carpet area.
Tenants will be getting additional 35% carpet area viz. approx. 340 to 350 sq. ft carpet = approx. 535 BUA
 

4 units of 1RK 24,15,000 96,60,000

8 units of 1BHK 43,06,750 3,44,54,000

Total selling price 4,41,14,000 i.e. 4.41 crore

 Project Profit

Description INR

Project Sale 4,41,14,000

Project expenses 21,766,350

Profit = Total selling price- Grand total 2,23,47,650

Project Sale - Project expenses = Profit

4,41,14,000 - 21,766,350 = 2,23,47,650

i.e. 2.2 crore

102% profit for the developer

 Gross financial benefits to the society
due to redevelopment
SR.NO DESCRIPTION AMOUNT(In Rs)
Savings due to eliminating the Cost of Major
01. 525000
Repairs @ Rs 150 Per Sq. ft = 150 x 3500 = Rs 5,25,000

Cost of construction of new building @ Rs 1350 Per Sq. ft

02. 14598900
of construction area = 10814 x 1350 = Rs 1,45,98,900

Cost towards the NMMC outgoings for the constructing

03. new building @ Rs 150/- Per Sq. ft of construction area = 1622100
10814 x 150 = 16,22,100/-

Cost towards temporary accommodation at Rs month per 1400000

04.
Sq. ft for 24 months = 14,00,000

Free Additional Carpet Area of Minimum 75 Sq. ft Per

05. Member x 10 = 750 sq. ft Therefore increase in valuation of 6037500
property = 750 x 8050 (Earlier area 225sq ft)

06. CORPUS FUND offered by Builder 3000000

  TOTAL FINANCIAL GAIN TO THE SOCIETY 27183500

Network Diagram
 Duration of Project
Flow Activity M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12

1  
Structural audit
2 Preparation of feasibility report  

3 Finalization of developer & Preparation of

development agreement & Finalization of building
plans      
4 Vacating existing building      
5 Demolition & Site cleaning  

6 Site demarcation and survey from respective

authority  

7
Finalization of plans with architect along with area
statement & Submission of plansand making
revisions in plans if suggested by the authority  
8 Approval and sanctioning procedure  
 Duration of Project
Flow Activity M13 M14 M15 M16 M17 M18 M19 M20 M21 M22
9 Receiving commencement certifcate(C.C)  

10 Appointing structural engineer and getting necessary

documents for further process  
11
RERA registration  

12 Getting coulmn positions and sizes for marking

centreline on site  

13 Architect to prepare centreline drawing and to mark

accordingly on site  
14
Construction of foundation and plinth level  

15 Plinth approval and receiving plinth completion

certificate from the authority  
16 Construction of 2 slabs  

17 Habital Floor Completion Certificate i.e. HFCC from

the authority  

18 Constructing remaining 3 slabs & Construction of

blockwork/brickwork/walls          
 Duration of Project

Flow Activity M23 M24 M25 M26 M27 M28 M29

19
External plaster & Internal plaster    

20
Completion of tiling work & Windows, door and sanitary fittings &
Electrification work and plumbing work          

21 Installation of balcony railings and staircase railing & Internal and

external paint work    
22
Ground floor pavement blocks & Cleaning  
23
Applying and receiving occupational certificate (O.C)  
 Duration of Project

Flow Activity M 18 M 19 M 20 M 21 M 22 M 23 M 24 M 25 M 26 M 27 M 28 M 29 M 30
24 Construction of 2 slabs  

25 Habital Floor Completion Certificate i.e. HFCC

from the authority  

26
Constructing remaining 3 slabs & Construction
of blockwork/brickwork/walls          
27 External plaster & Internal plaster    

28 Completion of tiling work & Windows, door and

sanitory fittings & Electrification work and
plumbing work          

29
Installation of balcony railings and staircase
railing & Internal and external paint work    

30
Ground floor pavement blocks & Cleaning  

31 Applying and receiving occupational certificate

(O.C)  
CPM Network Diagram
CPM Network Diagram
 Advantages

• Better planned and designed flats with earthquake resistant structure having attached bathrooms
in bedrooms.
• Corpus fund received will take care of the increase in the maintenance cost of the Premises or could
be utilized for some other purposes.
• An additional area of 25-30% will be received as compensation from the Developer.
• Also, additional space, if available, could be purchased from the Developer at best available price.
• Modern facilities/ amenities/gadgets like lifts, smoke detectors, firefighting alarm system, concealed
plumbing, concealed wiring for electricity, telephone, cable TV, etc. will be available etc.
• Stilt parking will fix the parking issue and shall ease space on the ground. This will provide open
space for kids playing.
• Well designed and constructed access roads will be provided.
 Challenges
• The Development Agreement that forms the basis of a “Redevelopment Project” is required to be
drafted by a professional keeping in mind the safety and security of all the members.
• Any lacuna in the preparation of this deed may result in great loss for the members who are
eligible to many perks in consideration of giving permission for this project.
• All the members of the Society have to be satisfied with all the plans of proposed by the
Builder/Developer.
• For a considerable period of time members have to hunt for accommodation and stay in another
place which disrupts their age old routine;
• Additional new members would take a longer time to adjust to the existing original members,
resulting in disputes on various issues.
• New constructions equipped with all kinds of latest amenities in turn increase the cost of
maintenance to be paid to the Society.
 Challenges
• The tax burden is high and in case the Occupation Certificate (OC) is not procured, then the
NMMC Charges and Water Charges are very high.
• Additional members will require extra consumption of water creating scarcity or shortage of
available water supply.
• Additional vehicles need extra space.
• Additional area purchased is at current market value, which attracts Stamp Duty and Registration
Charges.
• In the event, the redevelopment project remains incomplete, it gives rise to litigations.
 Conclusion
• Redevelopment of properties of existing societies has been a subject of great interest in recent years, both to the
societies and to the developer.
• Redevelopment has become quite popular since it is a most practical , economical and long term solution in a
scenario where old structures are proving uneconomical and obsolete.
• For developers it is a cost effective way to construct residential/commercial premises by utilizing the unused
potential i.e. the FSI,TDR with gradual capital investment, in times of heavy land prices and in a situation of
unavailability of land in good locations.
• Redevelopment arrangement begins with the conception of an idea to redevelop and it ends with the handing over
of the agreed constructed area and the corpus fund or other monetary considerations to the society by the
developer.
• Developers, on their part, are also on the lookout for properties with unused development rights where they can
build a new structure of a few storey higher and sell those additional flats for a tidy profit for them.
• While it may sound like a typical ‘win-win situation, the process of redevelopment isn’t as easy as it sounds.
• It comes with a set of rules, guidelines, procedures and implications which are to be followed considering the
property of many residents is at stake.
Thank You