Property redevelopment & its benefits
India is a crowded country given the size of its population versus the size of its land. With land for building homes and tenements being in short supply always, it’s time for land with existing homes to undergo a complete redo. In almost all cases of redevelopment, the entire structure is demolished and a new one put in its place. Doing so has its own set of reasons and advantages. We mention a few important ones below.
Main reasons that are fueling property redevelopment:
Cities need tenements but don’t have open spaces
Over-crowding and India are synonyms. The more one goes into a city, the more pronounced the problem. In some cases, because of lack of space, the best people can get are just rooms, while at the same time, there are large sized unoccupied properties in the same locality which if redeveloped can bring relatively unoccupied spaces into the market and ease the problem. In this way, it would ease the space crunch and make usage better. To an extent, it may also ease the problems of slums cropping up in practically y urban space in India.
Old properties sometimes have tenements that may need severe refurbishing. Redevelopment could be a better option
Old isn’t always gold, especially when it loses value with time. Tenements like buildings, homes and apartments unlike land being unnatural structures deteriorate and degrade with time. Buildings that came about decades ago show signs of strain with cement and concrete falling and even exposing the girder rods and beams within. With time (and low maintenance), this strain only grows. If not addressed in time, there is every chance of the building imploding on itself. That said, the cost of maintenance of any structure grows with age with the rightful extension being a complete demolition and rebuilding. And while one has to do that, it makes sense to plan it so that the final structure takes care of multiple needs.
FSI and change in usage may bring more value
A perfect case in point includes areas within a certain distance of public utilities including trains, metros, roads and flyovers. To take care of the increased footfall, corporations and authorities are known to provide higher floor space indexes (FSI) than usual. If used thoughtfully, this takes care of multiple needs of users. People get homes and tenements, and sometimes quite a bit of extra space which could take care of multiple needs including an income from rentals. The best way to avail this benefit is to completely redo the existing structure with the new ones taking care of multiple needs like shops, offices, homes and utilities, all within the same area.
People may want to have a bigger space in the same area or plot
Buildings have emotive values, especially homes. And emotions sometimes remain far from reality. With sense coming later, it is possible that land owners may want to redo their existing plot of land to address multiple needs that crop up later. Examples abound in urban areas including Pune where large tasteful bungalows have been demolished in favour of high-rise apartments that accommodate multiple families in all available comforts.
Property development has its share of benefits! Among others, it includes the following:
For plot owners: If homes are old, they get new homes with the latest fittings. Additional tenements could lead to a steady rental income
Old homes with older citizens mean just one thing. Trouble for all. With things falling apart, and one not having the time or the energy to do anything constructive, redevelopment could be the perfect solution. That said, even if the tenement is ship-shape, it could be troublesome for those short on resources, time and patience. The most sensible thing then is to redevelop the same and make it available to so many more owners.
For new buyers: A brand new apartment in an established area
For the new owner of property in a reconstructed location, the feel’s like “old wine in a new bottle”. The feel of the place has its plusses. It could have all that the essential bells and whistles, and most importantly, the tenement itself is mint-fresh. What else could one ask for, especially in overcrowded though significant locations, a live example of which could be the underway reconstruction of real-estate In Kothrud & surrounding area’s Pune.
For the location: More occupancy due to vertical and horizontal expansion
Kothrud . With high-rises coming up in a small area, it’s almost certain that interests be it of residents, businesses and utilities shall be taken care of. That said, with such numbers, the place itself becomes a self-sustaining business hub that attracts its own set of people who would like to be there for their own reasons.
Better usage of land per square foot
Palaces were fine in the time of Kings when needs were radically different. With population worldwide exploding, and so too the need to stick together for various reasons, redeveloping existing property to accommodate larger number of residents is the best way to use a precious though entirely in-elastic
Redevelopment is thus a necessity, and more so in the Indian context given our peculiar situation and circumstances. That said, it ought to make sense by the use of right means including planning and positioning of the newer construction so as to derive higher value than that of the exiting (or previous) property. And for that, you ought to go with specialists who have the right experience and expertise that’s known to the world.