Realty developer Kalpataru Ltd has secured the rights to redevelop a large housing society spanning nearly 4 acres in Mumbai's western suburb of Andheri, specifically in the Lokhandwala area, according to sources familiar with the matter. The redevelopment project is expected to cover over 8 lakh sq ft, including 5 lakh sq ft of saleable area, with a projected revenue of over Rs 2,100 crore. Currently, the layout comprises 12 residential buildings with 290 apartments spread across 1.90 lakh sq ft. The project will involve rehousing and providing 3 lakh sq ft of redeveloped space. The company has signed the development agreement and aims to complete the project within four years. “The developer is currently planning the layout and design, which will feature unobstructed views of the mangroves,” said one source.
In June, it was reported that Kalpataru acquired the rights to redevelop a nearly 6-acre housing society in Mumbai's Borivali suburb, planning to invest around Rs 700 crore in a 700,000 sq ft residential project expected to generate Rs 1,300 crore in revenue and be completed in 3-4 years. This project involves the Yoganand Co-Operative Housing Society, housing nearly 400 residents.
In recent years, many real estate developers have shifted to asset-light models, such as joint development and development management agreements. Redeveloping old housing societies is a significant aspect of Mumbai's property market due to limited vacant land. In July, Maharashtra's government announced that members of redeveloped housing societies need not pay stamp duty on their new permanent accommodations, except for a nominal Rs 100 fee, while the main agreement will be charged as per conveyance. This decision is expected to boost redevelopment efforts for old housing societies across the state.
Despite rising interest rates and property prices, Mumbai's property market continues to break records, driven by luxury, premium, and mid-income segment properties. The city is reaching new heights in property registrations and stamp duty revenue collection.