'Dharavi likely to unlock 140m sqft free sale portion'
MUMBAI: Property experts estimate a free sale component of roughly 140 million sq ft to be unlocked by the Dharavi redevelopment plan, yielding revenues of Rs 1.2-1.7 lakh crore for the joint venture between the state government and the
.
Tired of too many ads? go ad free now
Said Anuj Puri, chairman, Anarock Group, "At a rough estimate, the Dharavi redevelopment project presents the builder with about 140 million sq.ft. of overall saleable area for sale on the open market, with a separate allotment for rehabilitation of the current inhabitants. We are roughly looking at over Rs 1 lakh crore of gross revenue. The anticipated profit margins are anywhere between 18-25%. It is also important to note that the Dharavi redevelopment project permits the developer to monetize TDR, or Transferable Development Rights, as well as commercial spaces.
''
Nav Bharat Mega Developers is a special purpose vehicle between the Adani Group and the state for Dharavi's revamp. Total rehab cost including housing units for eligible beneficiaries and other for affordable rental housing is projected at Rs 95,790 crore, of which construction cost will be Rs 23,800 crore. This factors in the cost of building and handing over 72,000 units free of cost (residential rehab units, residential renewal units, commercial and industrial rehab units and commercial renewal units).
Since 270 acres have been demarcated as net developable area, all the land left over after providing 72,000 units will be available to develop in the free sale component.
Pankaj Kapoor, MD of Liases Foras, a realty research firm, said he expects profit margins to be 25-30%. "This is on a projected revenue of Rs 1.2 lakh crore to Rs 1.7 lakh crore from the sale component at average market price of Rs 25,000 a sq ft,'' he added.
Tired of too many ads? go ad free now
"Projected saleable area is expected to range between 40.7 million sq ft and 60 million sq ft, depending on extent of FSI utilized for the rehabilitation portion," said Kapoor.
However, he cautioned that the project's seven-year completion timeline was "highly ambitious''. "To stay on track, achieving annual sales of approximately 6.5 to 9 million sq ft will be a challenge and necessitate highly competitive pricing,'' he said.
Architect Alan Abraham said at Rs 95,000-plus crore, the Dharavi project is cheaper than the bullet train, only 3x the cost of Mumbai Metro 3 and 6x the cost of the coastal road. "It seems really inexpensive to transform our city centre, to better the lives of millions of our citizens. If the development of Dharavi is so important to our city, then I wonder why the government couldn't just do this themselves - while keeping these and the additional lands public, and earning all the revenue from the TDR,'' he said.
"In my opinion, the sale price of the Dharavi project will exceed those in Bandra-Kurla Complex, and perhaps even Linking Road,'' he added.
Aditya Thackeray, Shiv Sena (UBT) leader, said the Adani Group was given incentives for this project in the form of 1,300 acres across the city free. "BMC is being denied a premium of Rs 7,500 crore for its land and the TDR incentive." He said the MVA government showed a better model of redevelopment for BDD chawls through a government agency.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
Noise barriers to come up at six flyovers in A'bad
Ahmedabad: Acting on complaints from city residents, the Ahmedabad Municipal Corporation plans to install noise barriers on six more flyovers in the city, including those at Shivranjani, Pallav and AEC junctions, to reduce noise pollution caused by vehicles. Tired of too many ads? go ad free now Three years ago, the National Highway Authority of the central govt had installed noise barriers on the flyovers at SG Road. The AMC has already installed these barriers on the Income Tax junction flyover and Thakkarbapanagar bridge, completing the work for Rs 1.82 crore. Although a tender was issued for the installation of six new noise barriers, the corporation did not receive bids. So a fresh tender has been issued, sources said. Standing committee chairman Devang Dani said, "Complaints about noise pollution from societies near flyovers or railway overbridges are commonplace. Noise barriers have been installed on the Income Tax flyover and Thakkarbapanagar bridge. To reduce noise pollution in the city, plans are underway to install noise barriers on six flyovers/railway overbridges." At present, there are 92 bridges in the city, with work on 13 bridges in progress. By 2024-25, the corporation plans to complete work on the Ghodasar split flyover, Pallav Junction flyover, Paldi Jalaram railway underpass, Chandkheda railway underpass, IOC Chandkheda underpass, D-Cabin railway underpass, Makarba railway underpass and Chenpur underpass. Ahmedabad: Acting on complaints from city residents, the Ahmedabad Municipal Corporation plans to install noise barriers on six more flyovers in the city, including those at Shivranjani, Pallav and AEC junctions, to reduce noise pollution caused by vehicles. Tired of too many ads? go ad free now Three years ago, the National Highway Authority of the central govt had installed noise barriers on the flyovers at SG Road. The AMC has already installed these barriers on the Income Tax junction flyover and Thakkarbapanagar bridge, completing the work for Rs 1.82 crore. Although a tender was issued for the installation of six new noise barriers, the corporation did not receive bids. So a fresh tender has been issued, sources said. Standing committee chairman Devang Dani said, "Complaints about noise pollution from societies near flyovers or railway overbridges are commonplace. Noise barriers have been installed on the Income Tax flyover and Thakkarbapanagar bridge. To reduce noise pollution in the city, plans are underway to install noise barriers on six flyovers/railway overbridges." At present, there are 92 bridges in the city, with work on 13 bridges in progress. By 2024-25, the corporation plans to complete work on the Ghodasar split flyover, Pallav Junction flyover, Paldi Jalaram railway underpass, Chandkheda railway underpass, IOC Chandkheda underpass, D-Cabin railway underpass, Makarba railway underpass and Chenpur underpass.
Time of India
an hour ago
- Time of India
Sindhu Bhavan multilevel parking: AMC opts for sale deed to bypass 18% GST
Ahmedabad: The civic body's policy making body has opted to sell 16 offices and 29 shops in the Sindhu Bhavan Multilevel Parking Complex through sale deeds, bypassing the 18% GST applicable on 99-year lease deeds. Tired of too many ads? go ad free now The standing committee approved the proposal on Thursday. An official announcement is expected shortly. Previously, the AMC leased out properties for 99 years, but the GST had prompted a change. In July 2023, AMC attempted to sell 68 shops floor-wise in the same complex, offering 12,868.62 sq m of office-type space on the ground, first and fifth floors at a base price of Rs 197 crore. The auction failed to attract buyers for the first and fifth floors. Only one bidder emerged for the 4,158.33 sq m ground floor, bidding Rs 80 crore, though payment remains pending. AMC has now extended the deadline and will now auction the remaining units via sale deed. Standing committee chairman Devang Dani confirmed, "If the property is sold through a 99-year lease deed, GST is applicable. So now, the shops/offices will be sold via sale deed."
Time of India
an hour ago
- Time of India
Vertical gardens to be made must for high-FSI bldgs in Goa: Viswajit Rane
Margao/Bicholim/Vasco: State govt is set to introduce mandatory Lush vertical gardens adorn futuristic skyscrapers at sunset. A reflective pool mirrors the golden cityscape in a tranquil park. vertical gardening requirements for buildings with high floor space index (FSI), town and country planning minister Vishwajit Rane said. The new regulations will require all buildings with 250 or higher FSI to incorporate vertical or terrace gardening systems. Rane said an official notification of the vertical forest guidelines is expected soon. Occupancy certificates will be issued to buildings only upon full compliance with these new requirements, he added. Apart from the vertical gardening mandate, Rane outlined plans to revise FSI restrictions to accommodate essential infrastructure needs. Exemptions from FSI calculations up to a certain extent of the height of a building could be considered specifically to allow for parking facilities and other public amenities like a community hall, he said. The announcement came as Goa launched an ambitious afforestation drive under the 'EkPedMaaKeNaam' campaign, which aims to plant 5 lakh trees across the state over the next three to four months. The first phase began on Thursday with 500 trees planted at Sonsoddo, a place that was once a legacy dump, which will now be home to 65,000 new trees. Rane said that within a year, the place will be transformed into a beautiful landscape. Phase 2 of the tree-planting initiative is scheduled to commence in Aug, with dedicated nodal officers appointed to ensure the smooth execution and continuous monitoring of the programme's progress. Margao MLA Digambar Kamat, director of municipal administration Brijesh Manerkar, and chairperson of Margao Municipal Council Damodar Shirodkar were among those present on the occasion. Meanwhile, Bicholim MLA Chandrakant Shetye, on the occasion of World Environment Day, called on farmers to use modern technology to bring their fallow land under cultivation. 'Our ancestral agricultural land is in ruins today and the younger generation of the households are looking for jobs. Our soil has the potential to grow gold,' he said. In Mormugao, Vasco MLA Krishna Salkar distributed saplings to students from St Joseph Institute, Vasco and surrounding institutions, encouraging them to actively plant and nurture trees.
