Self Redevelopment
Self-Redevelopment
The concept of Self Redevelopment comes out vividly dynamic in the space starved metropolitan of India especially Mumbai, which defines this notion as an alternative, feasible at both the ends of the contract.
In general, homeowners are considering Self Redevelopment for appointing their own contractors, architects & project management consultants to execute the same. Self-Redevelopment can be either for housing societies or stand-alone buildings, projects which are governed by bank loans.
Benefits of Self-Redevelopment
Home owners
- The actual beneficiaries are the housing society members themselves, of the unused potential of the property, without stake dilution.
- Members invariably not only get bigger homes than, what they would normally expect with improved amenities & facilities but also have complete control over the quality of construction, the completion timeline & enjoy more corpus funds emancipating from selling surplus homes generated in the redevelopment process.
Developer
- He gets a stake in the entire undertaking
Banks
- Even the loans are largely feasible as collateral is covered by the mortgage of the society land & lien on proposed sale of flats.
Government Intervention
- Over & above all, encouraging government intervention comes to the aid, of all parties involved, to make it happen, in reality!!!
Limitations
- However, benefits naturally go hand in hand with limitations & as experience will indicate, even Self Redevelopment, is not spared of these.
- Getting the right expertise on-board, i.e. the architects, contractors, banks is difficult due to the non-availability of experts in the subjects.
- Moreover, the members are already inclined in their own businesses or jobs & are not able to contribute qualitative & notable time towards the same, hindering the pace of monitoring the entire process.
- The process of Bank loan making it mandatory to get 100% written consent from all involved stakeholders for the project to commence, acts as an impediment in most of the projects.
Overall
With the right government intervention & policy in-place, Self-Redevelopment has the potential to be the alternative, in metropolitan, where, not only land is scarce, but, at most times, not available at all!!!