Building Redevelopment: Benefits, Process, Entitlements & Owner Calculator
Across Mumbai, Delhi, Bengaluru, Pune and Nagpur, old buildings are making way for safer, smarter towers. This complete guide explains the Benifites of redevelopment building (spelling as commonly searched), how much area owners typically receive, timelines, costs, and how to evaluate offers—plus a built-in calculator.
Contents
- Introduction: Why Redevelopment Now?
- Benifites of Redevelopment Building (Owner & Society)
- Step-by-Step Process & Timeline
- What Owners Get: Area, Rent, Corpus
- City Snapshots: Mumbai, Delhi, Bengaluru, Pune, Nagpur
- Owner Calculator (Area, Rent, Corpus)
- Illustrative Cost & Offer Comparison Tables
- Checklists: Documents, Risk, Negotiation
- FAQ
- Send Enquiry on WhatsApp
Introduction: Why Redevelopment Now?
Many buildings constructed before the late 1990s face structural fatigue, outdated services, and a chronic shortage of parking and lift capacity. Redevelopment—demolishing and reconstructing with modern design—creates safer homes and unlocks value by using current development rules (FSI, TDR, premium FSI, etc.).
Under a well-structured deal, the developer funds construction, temporary rent, and amenities. In return, the developer sells additional flats generated by higher permissible FSI. Owners typically receive larger flats, improved layouts, and a corpus fund—without paying construction costs.
Benifites of Redevelopment Building
1) Bigger, Better-Planned Homes
Owners often receive 20–40% more carpet area (varies by city policy and feasibility). New plans improve daylight, ventilation, and room sizes.
2) Modern Amenities
Elevators, fire safety systems, CCTV, EV-ready parking, rainwater harvesting, and community space are commonly included.
3) No Construction Cost + Rent Support
The developer bears the cost and typically pays monthly rent and shifting charges during construction.
4) Safety & Compliance
New RCC structure per current seismic codes, upgraded electrical & plumbing, and compliant fire egress improve safety.
5) Higher Property Value
Newer inventory with lifts and parking commands a higher resale and rental value than legacy buildings.
Step-by-Step Process & Typical Timeline
- Resolution & Committee: Society/owners pass redevelopment intent; appoint a redevelopment committee.
- Feasibility & PMC: Engage an architect/PMC to study FSI, TDR, and constraints; prepare a feasibility report.
- RFP/Tender: Invite proposals from reputed developers; compare offers on area, rent, corpus, timelines, specs, and financials.
- Negotiation & Selection: Shortlist top bidders; negotiate commercial & technical terms; verify credentials and funding.
- Development Agreement: Execute DA & POA; lock specifications, milestones, possession date, and penalties.
- Approvals: Plans, NOCs, and permissions from relevant authorities.
- Vacating & Rent: Owners move out; developer pays rent/deposit as agreed.
- Demolition & Construction: Safe demolition; foundation to superstructure per schedule; periodic updates to owners.
- Finishing & Handover: QC checks, occupation certificate, allotment & possession.
What Do Owners Typically Get?
- Increased Carpet Area: Commonly 20–40% (case-by-case).
- Monthly Rent + Shifting: For the entire construction period; some add escalation every 12 months.
- Corpus Fund: Lump sum per sq.ft. or per flat at handover.
- Parking: One or more slots depending on policy and negotiation.
- Specifications: Branded lifts, tiles, sanitaryware, electricals; green features.
City Snapshots
Mumbai
High land values and well-established FSI/TDR ecosystem make redevelopment widespread—suburbs to south Mumbai.
Delhi
Prime colonies (e.g., Greater Kailash) see villa/plot redevelopment; stringent approval flows apply.
Bengaluru
Localities like Indiranagar/Koramangala focus on layout optimization, parking, and premium finishes.
Pune
Kothrud, Deccan, Camp areas see society-led projects leveraging improved FSI and amenity demand.
Nagpur
Core zones like Civil Lines, Sitabuldi, Sadar and Itwari are upgrading older stock—parking and lifts are key drivers.
Owner Calculator — What You May Get
Estimate your new carpet area, total rent support during construction, and indicative corpus based on simple inputs. (Figures are illustrative; actual offers depend on feasibility and negotiation.)
Results
*Total = Rent Support + (New Area × Corpus Rate). Parking/amenities not included.
Illustrative Offer Comparison
| Parameter | Developer A | Developer B | Developer C |
|---|---|---|---|
| Extra Area | +25% | +30% | +35% |
| Monthly Rent | ₹24,000 | ₹26,000 | ₹22,000 |
| Corpus (₹/sq.ft.) | 1,000 | 1,200 | 1,050 |
| Parking | 1 slot | 1 slot + EV point | 1 slot |
| Possession | 36 months | 32 months | 40 months |
Illustrative only. Negotiate based on feasibility, approvals, and developer credentials.
Checklists & Best Practices
Documents & Due Diligence
- Society registration and member list
- Title documents, property card/7-12 extract
- Existing sanctioned plans & completion/occupation certificate
- Feasibility/FSI report by architect/PMC
- Draft Development Agreement & POA for legal vetting
Risk Controls
- Escrow for rent and corpus payouts
- Bank guarantee/performance security
- Construction milestones linked to payments/rights
- Penalties for delay; clear sunset clause
- Quality benchmarks and third-party audits
Negotiation Pointers
- Evaluate total value: extra area + rent + corpus + parking + specs
- Seek rent escalation every 12 months of delay
- Lock final carpet area and finishes in DA
- Ensure timeline with liquidated damages for delay
- Check past projects, financial strength, and litigation history
FAQ
How much consent is required?
Commonly 70% (varies by state policy). Societies should follow their bye-laws and local regulations.
Who pays rent and for how long?
The developer pays monthly rent (and often shifting charges) till possession. Ensure this is guaranteed via escrow or bank guarantee.
What if the project is delayed?
Include penalty clauses, rent escalation, and a sunset clause in the Development Agreement.
Send Your Redevelopment Enquiry
Have an old society or building in Nagpur, Mumbai, Delhi, Bengaluru, or Pune? Reach us directly on WhatsApp.
📲 WhatsApp:Final Word
Redevelopment, when executed with rigorous diligence, unlocks safety, comfort, and long-term value. Use the calculator, compare offers holistically, and secure robust legal protections. The Benifites of redevelopment building are maximized when owners choose experienced developers, transparent contracts, and quality oversight.
Disclaimer: This article is informational. Policies and rules vary by city and change over time. Always consult a qualified architect, PMC, and legal counsel before decisions.