“One in every three homes now being sold from a redevelopment project” is one of the significant changes taking place in Mumbai’s real estate market, according to financial expert Akshat Shrivastava. However, in addition to bringing in new, taller buildings, these initiatives raise property values and present serious infrastructure difficulties.
“Old buildings are demolished, and new, taller structures replace them” is the straightforward pattern of redevelopment in Mumbai. In addition to increasing the number of available residences, this further strains the city’s already overburdened infrastructure.
Redevelopment is the main strategy to meet Mumbai’s expanding housing needs because the city is running out of available land. High-rises are taking the place of older, deteriorating structures. Roads, drainage, and public transport, however, are unable to keep up.
“New taller buildings will bring in more infra pressure if the city can’t handle critical infra issues like water, garbage collection, traffic, etc.” Shrivastava made this argument in a tweet on Sunday.
Prices are “not dropping” as one might anticipate in a conventional supply-demand scenario, even if the quantity of homes has increased. Rather, compared to older buildings, “units in redeveloped projects are released in phases” and sold for substantially more money.
“Ideally, costs should decrease as there are more new developments and housing available. However, that is not how real estate operates, Shrivastava clarified.
The exorbitant price of properties in these projects—”as much as 1.5 times higher than older homes”—makes housing less accessible. Mumbai continues to rank among the most costly and unaffordable cities in India, even with extensive renovation initiatives. A good flat often costs more than Rs 2 crore to buy.
“Paying more for homes that will eventually face worsening infrastructure issues” is what this means for buyers. Older neighbourhoods are being revitalised by renovation, but the strain on the water supply, public facilities, and roadways keeps increasing unchecked.
Shrivastava came to the conclusion that “people end up buying more expensive homes, which— eventually—will face higher infra challenges and poorer quality of life.”
Source: Business Today
