‘1 in 3 homes sold in Mumbai comes from redevelopment but at what cost…’: Expert’s reality check on real estate

The real estate scene in Mumbai is a dramatic transformation, where “one out of all three houses of the redevelopment project” is now sold, according to the Sherfastava financial advisor. But while these projects bring new and longer structures, they also pose major infrastructure challenges and increase real estate prices.

The redevelopment in Mumbai follows a simple style: “Old buildings are demolished, and the longest new structures are replaced.” This not only increases home supplies but also puts additional pressure on the already burdened infrastructure in the city.

Mumbai dedicates to vacant lands, making redevelopment the basic way to meet the increasing housing needs in the city. The old dilapidated buildings are demolished and replaced by high floors. However, roads, sanitation and public transport are struggled to keep pace with this.

“If the city is not able to deal with critical implicit problems such as water, garbage collection, traffic, etc., then the longest new buildings will bring more infrared pressure,” Sriffastava indicated in a tweet on Sunday.

Despite the increase in housing supplies, prices “do not decrease” as one might expect in the traditional demand scenario. Instead, “units in re -developed projects are released in stages” and are sold at much higher rates of old characteristics.

“Ideally, with new developments and more home supply, prices should decrease. But real estate does not work like that.”

The characteristics of these projects are often a premium – “up to 1.5 times from old homes”, making housing less affordable. Despite the enormous development projects, Mumbai is still one of the most expensive cities in India. Average home prices for a decent apartment up to 2 rupees.

For buyers, this means “pushing more for homes that will eventually face the exacerbation of infrastructure problems.” While redevelopment stimulates the aging neighborhoods, pressure on roads, water supplies and public services is still growing.

“People end up buying more expensive homes, which – in the long run – will face higher challenges than Infra and of the most terrifying quality of life,” Shrivastava concluded.