MHADA Proposes Redeveloping 18 Buildings In Umarkhadi
The Maharashtra Housing Area Development Authority (MHADA) has proposed to redevelop a cluster of 18 dilapidated buildings in Umarkhadi near Mazgaon in South Mumbai. The cluster in Umarkhadi is spread over almost 2 acres of land and has about thousand tenements.
Out of the 18 buildings considered for redevelopment, nine of them were built under the Prime Minister’s Grant Programme (PMGP) during the late prime minister Rajiv Gandhi’s tenure. While MHADA has decided to redevelop these buildings, it is also considering redeveloping nine other old and shaky cessed buildings in the neighbourhood of Umarkhadi. The file containing the proposal has already been cleared by the urban development department and is awaiting the state government’s approval. The only minor problem the housing department may face is that one building out of the 18 is already redeveloped.
Cluster redevelopment
MHADA plans to redevelop the cessed buildings under the Development Control Rules (DCR) section 33/9 which is about the cluster redevelopment policy. According to the policy, the minimum area of a cluster will be 1 acre. The cluster redevelopment can be done either by a public agency or a private developer. The redeveloper will also be provided a floor space index (FSI) of 4 for integrated development.
The facility of additional FSI has important implications for the redevelopers. If MHADA decides to redevelop the dilapidated buildings, it will get a significant additional housing stock which can be added to its affordable housing float. If a private developer takes up the redevelopment project, this can be a lucrative proposition for the developer.
Umarkhadi geography
Umarkhadi lies in South Mumbai which contains Mumbai’s main business areas. South Mumbai hosts the Reserve Bank of India and the Bombay Stock Exchange. Other key areas in the proximity of Umarkhadi are Nariman Point, the Fort and Lower Parel. The Chhatrapati Shivaji Terminus (CST) and Churchgate which are the starting points of Central and Western lines respectively are nearby. South Mumbai is also known to have uninterrupted power supply. South Mumbai is one of the most prestigious and most expensive places in India. This makes Umarkhadi an important area.
Amenities and real estate
Umarkhadi has several amenities within and around the area. The area lies between the JJ Road, which is a part of national highway (NH-3) and Eastern Freeway. It is also just 4 kms away from the Chhatrapati Shivaji Terminus. It has two railway stations nearby. The JJ Group of Hospitals is just outside Umarkhadi. The area also has several schools and colleges. Umarkhadi lies within the vicinity of expensive areas such as Sewri and Mazgaon. It also lies in South Mumbai which is very expensive. As such, the area itself is quite expensive. There are already apartment complexes and colonies here such as Samson Apartments and Super Colony.
The area of a typical 1 BHK apartment is between 500 – 650 sq.ft and the area of a 2 BHK apartment is between 960 – 1,400 sq.ft. The covered area of a 3 BHK apartment is between 1,250 – 1,770 sq.ft while the area of 4/5 BHK apartment can start from 1,900 sq.ft and go up to 4,150 sq.ft.
Real estate trends
The monthly rent for a 1 BHK apartment is between Rs. 15,000 – 35,000 while it is between Rs. 50,000 – 95,000. The rent for a 3 BHK apartment ranges from Rs. 75,000 – 1.35 lakhs. A 4/5 BHK apartment has a rent in the range of Rs. 1.75 lakhs – 3.5 lakhs.
The capital value in the surrounding areas have been on a steady rise in the last quarter. The average capital value of properties is between Rs. 28,500 – 31,150 per sq.ft.
