Ahmedabad ready for redevelopment, more clarity needed

Taral Shah, MD of Shivalik Projects, says guidelines are needed to deal with non-consenting members in redevelopment projects

With the pandemic situation easing, a flurry of redevelopment projects are expected in Ahmedabad in the near future, he says

Ahmedabad (Gujarat) [India], March 12: The trend of real estate redevelopment is poised to grow in Ahmedabad, but more regulatory clarity is needed, according to leading real estate developers.

Redevelopment, which refers to demolishing old buildings and undertaking development afresh, has been in vogue in cities like Mumbai for decades. Redevelopment allows for better utilisation of land because of higher FSI, and some of its advantages are larger apartments, better amenities, higher resale value of property, proper parking space, improved fire safety system, among others. While redevelopment has also become popular in Ahmedabad in the past few years, the number of projects is still quite low.

“Redevelopment is a must for new projects to come up in the prime locations of Ahmedabad, where land is otherwise not available. Redevelopment is beneficial for all stakeholders and must be encouraged. That said, it is comparatively a new trend in Ahmedabad, and as with any new thing, it will take some time before it gets widely accepted,” says Taral Shah, Managing Director of Ahmedabad-based Shivalik Projects, a leading real estate developer.

With a view to spur redevelopment of old buildings, the state government in July 2019 amended the rules for redevelopment, making the consent of only 75% of the members necessary instead of the 100% requirement earlier.

“The rule to get the consent of 75% of the members for redevelopment was to make the process easier. But, what about the members who are not giving their consent? There are no guidelines regarding how to deal with non-consenting members. The option is that the consenting members take non-consenting members to court, but it is a time-consuming process. What is needed are clear-cut guidelines on this aspect. This clarity will really boost redevelopment projects,” he adds.

Shah said more than 50 (approximate number pls?) redevelopment projects in Ahmedabad were in advanced stages of negotiations in late 2019 and early 2020, but most were delayed or called off because of the Covid-19 pandemic.

“For the last two years, there was just too much uncertainty. Developers were willing to take up redevelopment projects despite the huge risks, but many societies withdrew from the agreements and decided to wait for the situation to return to normal. Now that the worst of the pandemic seems to be behind us, we are expecting a flurry of redevelopment projects in Ahmedabad,” he says.

Parag Thakur

183 thoughts on “Ahmedabad ready for redevelopment, more clarity needed”

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