Analysts at IIFL Securities visited the BDD chawl redevelopment project at Worli, the largest residential construction project in India, and met the contractor’s consortium to assess the progress on the project and its effect on the Mumbai real-estate market.
The project involves execution of ~25.5 million square feet (msf) in the next ~10 years, with ~14 msf of free sale FSI that has potential to generate ~Rs400 billion (IIFL estimate) topline for the state government. Onsite progress has picked up in recent months, post government intervention in resolving tenant issues. However, analysts at IIFL Securities see execution challenges continuing to weigh on timelines, leading to residential supply remaining calibrated in Central Mumbai markets rather than creating a supply glut.
Source – Indian Foline
Pic Credit – Mumbai Mirror
