Ahmedabad: Over 200 housing societies in the city are currently under redevelopment, shows data shared by RERA authorities. With the right impetus, this number could be much higher, a study by Cept University student and faculty members shows.The project, ‘Enabling Private Housing Redevelopment’ by Paramsinh Chauhan, a student of a master’s in urban housing, was directed by Prof Sejal Patel and visiting faculty member Amruta Patel. A calculator has been developed under the project for societies to understand the net gains and if redevelopment is feasible.There are several factors that calculate feasibility. Effective use of increased floor space index (FSI) is one. Prof Patel said higher FSI in transit-oriented zones (TOZ) does not automatically translate into effective consumption as regulations such as height restrictions, road width and margins or setbacks linked to it, and smaller plot sizes are among the factors that come into play.“Viability is also associated with the society’s age. Those built under the 2001 regulations do not provide FSI for balconies. The net gain is thus 20% for developers, making redevelopment not a viable option,” she added.Other factors are micro markets and sale price. Researchers point at Navrangpura and Paldi as some areas with higher residential/commercial selling prices that create a wider margin between development cost and sale value, making redevelopment comparatively more viable. On the other hand, an area like Asarwa has lower achievable selling prices resulting in a narrower margin over construction costs, making redevelopment financially difficult even if additional FSI is available.Kartik Soni, who is redeveloping seven societies, said there are many challenges in deals and projects. “Competition is tough and although redevelopment has huge potential in the city, many projects still have unsold inventory. Trust is a major factor in redevelopment. Societies prefer known real estate brands with better offers. Special FSI benefits in redevelopment are needed,” he said.K D Desai, a developer, said, “In a large number of old societies, 75% members agree for redevelopment but deals do not get finalised due to the 25% objecting. There are no rules on this. Residents need incentives on stamp duty while builders need FSI. If this happens, Ahmedabad will see a spurt in redevelopment projects.”
