Redevelopment
- An Instrument For Change
By
Mr. Sachin Agarwal, CMD - Maple Shelters
Like
every other form of housing, affordable homes need space in order to be built.
Even more importantly, affordable housing needs to be available in locations
where it is needed the most.
In
most cases, we see affordable housing projects coming up only in distant
suburbs. This is because of there is no land for development in the central
areas of our cities, or the available land is priced too high for affordable
housing to make sense.
In
this scenario, redevelopment of old buildings and societies makes eminent
sense. Unfortunately, redevelopment is mainly used by developers to turn huge
profits, rather being used as a means to increase the supply of housing.
Redevelopment
- Good, Bad Or Ugly?
Several
factors influence change in the way products are conceived, produced and used.
We see very rapid changes taking place in the fields of engineering, consumer
electronics and software development, though fashion is also a noteworthy
example. Real estate is no exception, which is why we have the concept of redevelopment.
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| Sachin Agarwal, Maple Shelters. |
There
are two primary reasons why change is necessary in almost any product vertical:
1. Things wear out: Every manufactured
product has an inherent shelf-life built into it. Once its age exceeds this
shelf-life, it becomes unusable – and often dangerous to use
2. Technological
Innovation: The
world is constantly finding newer and better ways of doing things. Old concepts
are abandoned and new ones, based on new findings and technologies, take their
place. Just as we see hundreds of software packages across the world becoming
obsolete and newer ones replacing them, technological advancements in the
construction industry leave no space for older things in real estate.
Buildings
and societies in India are constantly being redeveloped – both to mitigate the
safety hazards of buildings that have reached or exceeded their 'expiry dates',
and to make way for more modern buildings that use available space in a better
way, have better electrical fittings and plumbing, are safer, offer newer
features and are also friendlier to the environment.
While
real estate developers, agencies and consumers are largely in favour of
redevelopment, there are always elements that oppose it.
In
India, these include slumlords that benefit from things remaining the way they
are, and building occupants paying negligible rents (locked in decades ago) who
would lose this benefit if their building were redeveloped.
However,
the consensus remains that redevelopment of old buildings is necessary and
beneficial.
Benefits
Of Redevelopment
Redevelopment
of old buildings is not merely about technological advancements or better
lifestyles - when buildings age, they become febrile and unsafe. The cement and
reinforcing metal bars used in buildings are all subject to degradation over
time, causing structures to become increasingly unstable.
As
disturbing news stories remind of with fair regularity, old buildings can and
do collapse in India. Redeveloping buildings after they have stood for a certain
span of time is not only an option - it is a life-saving necessity.
Redevelopment
of old buildings is not only a means of giving structures a new lease of life,
but also results in more homes becoming available in a location where supply is
constricted by non-availability of developable plots.
Moreover,
the homes that result are larger, safer and more comfortable than those which
were available in the building prior to redevelopment. Also, importantly,
redevelopment of an old building actually utilizes fewer resources than
developing a new building.
Buildings
which have been redeveloped are safer than they were to begin with not only
because of renewed structural soundness, but also because modern safety
features can be introduced where they did not exist before.
For
instance, many old buildings in cities like Pune and Mumbai were constructed
with now obsolete construction technologies - or by unscrupulous developers who
cut costs at every corner.
These
flaws or shortcomings in a building can be rectified during the redevelopment
process with the inclusion of CCTV cameras, fire alarms, access for
fire-fighting vehicles within the project, and firefighting hoses on all
floors.
From
a real estate market perspective, redeveloping or re-engineering an old
building significantly increases its value on the market. Unfortunately, this
is often the only objective for Indian developers to undertake redevelopment
projects in the first place.
Redevelopment
must be done in the right way and for the right reasons. Developers undertaking
such projects should do so not only to make a profit but also with the
intention of deliver more housing. Only then does redevelopment fulfill its
larger purpose.
Anywhere
in the world we look today, redevelopment of buildings properties is making
real estate more viable, enlarging and improving neighbourhoods and raising the
quality and safety of lives.
In
a large country like India, where homes are a constant need and very little
land options are left in the centres of cities where most people throng to find
employment, redevelopment plays a very important role indeed.
We
have seen some outstanding examples of developers taking up the redevelopment
challenge for the right reasons.
However, the concept must now spread onto a
larger canvas and become a nation-wide mass movement, enabled by proactive
incentives from the new government to ensure that this tool is used for the
greater good of our cities, and not merely for value exploitation.
About The Author:
Sachin Agarwal is CMD of Maple Group (founded
in 1997 as Goyal Constructions) whose mission is to provide genuinely
affordable housing to the common man without compromising on quality and
amenities. Maple Group’s ‘Aapla
Ghar’ initiative has seen unprecedented success.
The Group now has unique welfare housing
projects, other residential projects and commercial projects in 30+ key
locations in and around the city of Pune Maharashtra, India.
For media contact
Jay Kalghatgi
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