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The Redevelopment Fever: Are We Repeating pre 2015's Mistakes?

There’s a growing trend where societies get carried away with glossy offers: more carpet area, shiny amenities, and enticing payouts

The Redevelopment Fever: Are We Repeating pre 2015's Mistakes?
SHARES


Mumbai’s redevelopment scene these days is like a trendy fad – everyone's jumping on the bandwagon.

You’d think there’s a clearance sale on developers! Whether it’s a crumbling building on the brink of collapse or a well-standing structure merely eyeing a profitable upgrade, every housing society now seems to have “redevelopment” on its to-do list.

But hold on, haven’t we been here before?

Back in pre 2015, we saw this very craze. Developers swooped in with grand promises, society members gleefully signed up, and then... *poof!*

Many of those developers vanished into thin air, leaving half-finished projects and half-hearted hopes in their wake. It seems that the lessons of stalled projects and developer vanishing acts are fading memories, as societies today are once again dazzled by attractive proposals, forgetting the importance of planning and due diligence.

Here’s an interesting nugget I stumbled upon recently: A salesperson from a marketing agency revealed that they have a mandate from a developer to sell 40% of the project’s sale area as soon as the RERA registration is done. Based on my experience, if the developer manages to secure even 20% of the booking amounts, that might already cover more than their invested costs.


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Essentially, they’re making money before even breaking ground! This kind of quick profit strategy might be great for the developer, but it puts the society’s long-term interests at serious risk. There’s a growing trend where societies get carried away with glossy offers: more carpet area, shiny amenities, and enticing payouts.

But here’s the kicker – many societies are risking everything without securing proper safeguards. Some buildings are indeed in desperate need of redevelopment, and their urgency to escape dilapidated conditions is understandable.

But that desperation often blinds them to the essentials: background checks, financial stability, and the actual intentions of developers. The evaluation process of developers by these societies is more of a casual meet-and-greet than a thorough assessment.

“Oh, this developer completed a project a couple of years back? Great, let’s sign!” Throw in a site visit and some sweet talk, and voila – the society members are convinced!

It’s as if they’re picking a dinner venue, not the future of their home. The lack of scientific evaluation or professional scrutiny in developer selection is alarming. Adding to this chaos, many societies think the role of the Project Management Consultant (PMC) ends with selecting the developer.

Reality check: that’s just the beginning! If the society’s members don’t grasp this, we might soon be witnessing a rerun of stalled projects, this time on an even bigger scale.

Before signing on the dotted line, societies need to go beyond just a developer’s reputation. Understanding the developer’s leverage, financial health, and market standing is crucial. And let’s not forget – if your building is still repairable and not in immediate danger, why rush into redevelopment?

The fast lane isn’t always the safest; sometimes, it’s better to take your time than dive headfirst into unplanned redevelopment chaos. So, let’s think before we leap – because history, if ignored, has a nasty habit of repeating itself. Better late and well-planned than quick and stuck in limbo!

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