Best approach for self-redevelopment of a real estate project: 7 things to know
developers, housing societies are increasingly turning to self-redevelopment. This involves residents hiring a contractor and project management consultant, excluding builders. Selfredevelopment offers clear advantages: any surplus from selling additional inventory stays within the society and is distributed among members. “The major advantage is that society members reap the benefits of the property’s potential rather than the builder,” says Anuj Puri, Chairman of ANAROCK Group. By securing additional FSI directly, the society gains up to 25-30% more carpet area, compared to the typical 10-15% offered by builders. Moreover, the society controls every aspect of redevelopment. “Societies have more say in design, amenities and construction quality,” points out Swapnil Anil, Executive Director & Head, Advisory Services, Colliers India. They can also choose new members for the free-sale area.
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Despite the benefits, self-redevelopment is challenging. “From getting approvals to securing no-objection certificates, society members must do it themselves and work cooperatively,” says Puri. The society needs to get the land conveyed in its name, a lengthy process. Achieving consensus on design, budget, and potential compromises can also be difficult, observes Samir Jasuja, CEO, PropEquity.
First, the housing society must secure member consent by convening a special meeting, with notices sent to all members and the local registrar’s office, which sends a representative. Although unanimous consent isn’t legally required, most banks now mandate 100% written consent for self-redevelopment
