Kalpataru Secures Redevelopment Rights for 4-Acre Housing Society in Mumbai

Kalpataru Ltd has recently obtained the rights for redeveloping a substantial housing society sprawling across approximately 4 acres in Mumbai's western suburb, Lokhandwala, Andheri. The project encompasses an estimated development of over 8 lakh sq ft, including a saleable area of 5 lakh sq ft, with a revenue potential exceeding Rs 2,100 crore.

Currently, the site comprises 12 residential buildings accommodating 290 apartments spread over 1.90 lakh sq ft. The redevelopment initiative aims to provide a total of 3 lakh sq ft of redeveloped space.

The company has finalized the development agreement for this ambitious project, anticipated to conclude within a four-year timeframe. Plans for the project include meticulous layout and design considerations to offer an unobstructed view of mangroves.

In recent years, many real estate developers have shifted towards asset-light models, such as joint development and development management agreements. Projects like the redevelopment of old housing societies play a vital role in Mumbai's property market due to the scarcity of vacant land parcels.

The Maharashtra government's decision to exempt stamp duty for members of housing societies undergoing redevelopment is expected to catalyze numerous similar projects across the state. Under this ruling, members are only liable to pay Rs 100 as stamp duty, significantly reducing financial burdens associated with such endeavors.

Despite challenges like higher interest rates and escalating property prices, the Mumbai property market continues to set new records, driven primarily by luxury, premium, and mid-income segment properties.

Kalpataru's acquisition of the redevelopment rights signifies its commitment to contributing to Mumbai's evolving real estate landscape, addressing the city's growing demand for modern, sustainable housing solutions.

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