When Old Buildings Cannot Redevelop - Challenges in South Mumbai's Real Estate

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Older buildings in South Mumbai that lack scope for redevelopment face a range of outcomes influenced by structural conditions, legal frameworks, and market demand. Here’s a detailed breakdown of possibilities:

1. Structural Repairs and Maintenance

• Why: Buildings that cannot be redeveloped due to space or legal constraints might undergo extensive repairs and strengthening works.
• Outcome: This can extend the building's life for several decades, but periodic repairs will be necessary.
• Challenges: Higher maintenance costs and resistance from occupants to contribute financially.

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2. Cluster Redevelopment Initiatives

• Why: For buildings with limited individual redevelopment potential, cluster redevelopment can combine several old buildings or plots into one large redevelopment project.
• Outcome: Developers are incentivized to create modern infrastructure while providing residents with new homes.
• Example: Parts of Girgaon and Kalbadevi have seen such efforts under Mumbai’s Cluster Redevelopment Policy.

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3. Change of Use for Commercial Purposes

• Why: Buildings unable to attract residential redevelopment might be converted for commercial purposes like offices, warehouses, or boutique hotels.
• Outcome: This can generate better returns for landlords or societies.
• Example: South Mumbai’s historic buildings have already seen adaptations for cafes, co-working spaces, and small retail.

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4. Dilapidated Structures May Be Condemned

• Why: If a building is structurally unsound and cannot be redeveloped or repaired, municipal authorities may deem it unsafe.
• Outcome: Residents are evacuated, and buildings are demolished. The land may remain vacant for years until stakeholders resolve redevelopment issues.

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5. Tenancy-driven Stalemates

• Why: In many old buildings, existing tenants (under rent control laws) pay negligible rents. This creates resistance towards redevelopment and economic unviability for developers.
• Outcome: Buildings deteriorate further, turning into "camps" for legal disputes and disrepair.
• Challenge: Government intervention may be required to resolve disputes and incentivize redevelopment.

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6. Heritage Restoration

• Why: Buildings classified as heritage structures might be preserved through government or private funds.
• Outcome: Conservation efforts retain architectural legacy while converting parts into tourist attractions or adaptive reuse projects.
• Example: Iconic heritage buildings like Ballard Estate and Fort are models for restoration.

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7. Government Policies and Intervention

• Why: The Maharashtra government is increasingly focused on policies like the MHADA repair and redevelopment schemes or Slum Rehabilitation Authority (SRA) to rejuvenate older structures.
• Outcome: Incentives such as additional FSI (Floor Space Index) may be offered to make redevelopment financially viable.

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Summary

For old buildings in South Mumbai that lack redevelopment scope:

1. Maintenance or repairs will become the first solution.
2. Cluster redevelopment or collective initiatives might offer a lifeline.
3. Heritage restoration could preserve certain iconic structures.
4. Buildings beyond repair may face demolition, leaving stakeholders in limbo.

Ultimately, a combination of government policies, cooperative efforts from owners, and market forces will decide their fate.

Picture Courtesy: Pranshu Dubey - Pixeldo

 

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