REX – PMC REX – BMC

REDEVELOPMENT
FEASIBILITY
REPORT PROCESS

By
Anup D. Gupta.
BE. Civil, L.L.B., M.B.A.
Project Management Consultants.

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REX – PMC REX – BMC

Redevelopment work consist of 6 stages.

1. Land rights.
2. Building design – FSI calculation.
3. Cost factor .
4. Sharing of benefits.
5. Demolishing old building and
6. Construction Of new building.

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 OLD BUILDING - Issues
• Due to improper maintenance , the
deterioration has affected the service life of
building. It may not work for more years.
• Plinth level has become lower than road level ,
thus major water logging during rains.
• Climbing 3 / 4 floors has becoming difficult .
• Absence of Common facility. ( society office / parking /
gym / children play area, etc. )
• Need of additional space ,Due to increase in
family members. Not able to purchase
another flat due to Cost of property too high.
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OLD BUILDING
• In old building normally
1 FSI is provided.
• These 1 FSI is equal to
plot area.
• Land rights is 1 sq ft
land = 1 sq ft flat area.
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NEW BUILDING
• For new building
normally 3-5 FSI is given
depended on type of
owner ship of same.
• These 3-5 FSI is
proportionate to plot
area.
• Land rights will be
1 sq ft land = 4 sq ft flat
area.
REX – PMC REX – BMC

LAND RIGHTS
• Land rights are rights of indigenous
people to land.
• Land right as per document called
conveyance dead and property card.
• Land right as per document referred
to as Private, MHADA, Collector,
MMRDA, BMC, Gaothan, Lease
Hold, Farm Land.,etc.
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REX – PMC REX – BMC

Land Rights
• The majority of redevelopment are being
planned on Private and MHADA plot.
( All Around suburbs )
• Private plot is allowed 1:2 ( 1 land + 1 TDR )
• MHADA plot is allowed 1:4 ( 1 land + 3 TDR )
• Private and MHADA are different calculation
in redevelopment.
• On top another 35% Funjible Fsi is allowed by
MCGM.
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REX – PMC REX – BMC

BUILDING DESIGN- FSI CALCULATION

The FSI for New building that are as follows:
Old plot 25000 sq ft = FSI = 1 (25000 sq.ft.)

To plan. Consider a plot having 25000 sq.ft.

plot area as per old FSI = 1 i.e. 25000 sq.ft.

1. TDR = 1:1 (25000 sq.ft.)

(Transfer of Development Right)
These 1:1 one TDR is required to be purchased.
Total FSI = 2 i.e. 50000 sq.ft.

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REX – PMC REX – PMC

BUILDING DESIGN- FSI CALCULATION

2. On that 2 FSI area add funjible FSI 35% so it
become 2.7 FSI i.e. 67500 sq.ft.
3. On these 2.7 FSI area increase 25% for
common area ( staircase / lift / passage ) so it
become 3.5 FSI i.e. 84375 sq.ft.
4. On area of point 2, increase 50% for
parking, it becomes Overall Construction
Area = 1 Lakh sq.ft. Approx.
REX – PMC REX – BMC

CONCEPT PLAN
Main points to consider / required:
1) To measure the plot.
2) Measure the Road at all side.(9m)
3) Fix the Open Space
 As per Old Bldg (H/3)
 As per New Bldg (H/4)
4) Find / Fix the height of Building/Air path.
5) Fix the common Area which is 25% of actual
Area.
6) Fix the FSI to be used.(1: 3to5)

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REX – PMC REX – BMC

COST FACTOR
The following points are involve in cost factor:
• Land cost : R/R + 100% (already owned)
• TDR cost : 50% from govt. to buy : @ 60% R/R
50% from market (at negotiate price )
• Fungible FSI : 35% to old member (free)
: 35% to sale part ( to purchase )
• Common area : to old member area (free)
: to sale part area ( to purchase )
25% on total area @25% R/R

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REX – PMC REX – PMC

• Construction : 2500 to 4000 sqft

cost (as per area)
• Parking : 1000 to 1500 sqft
• Govt. approval : 150 (official) ,
1000 ( Others )
• Professional : 200 – 300 (per sqft)
 PMC : 50 / Design : 50
 Site Execution : 100 / Liasion : 50
 Legal & others : 50.
 Find out sale carpet rate ?
• Refer newspaper advt for sale of ready flat /
under construction bldg / Under new launch.
• Check ready recknor rate / running year.
• Check property sale websites - Makan.co m,
99acres.com, Magicbricks.com , housing.com , etc.
• Ask the clients / few members .
• Ask Property agents of local area.
• Refer newspaper rates / property times.
• Note all – but consider average of all .
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BASIC CONCEPT OF STAGES FOR REDEVELOPMENT

Sharing of benefits – Developer
• To invest project cost over / conduct business over 30 months.
Benefit - 30% + profit on project cost ( Project must be bankable)
Sharing of benefits – Society member / plot owner
• Plot owners /society to offer - – Depart proportionate land
Rights and allow developer to construct building.
• Benefit - Extra carpet area (At least one room extra ) with
Rent & Corpus amount for other expenses, etc.
 Expenses from benefit amount :
• Rent -24/30 months / Shifting -15 to 50,000/-
• Corpus –New taxes + furniture …
(old taxes:1-2 Rs/sqft, new taxes:5-10 Rs/sqft)

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 Builder Re-development
1 PMC prepares Financial – workable feasibility report
2 SGBM approves the report & expects builders to fulfill each & all promises
3 Tender floated to search for developer , to aid & manage entire project.
4 Developers appointed & enters into DA, gets development rights from
society. Prepares draft Concept plan for society approval with options to
accommodate more area .
5 On plan asks & Invites ( members ) to purchase additional area @10%
discount , over & above free area promised. Collects fund ( cash part only )
sufficient to get the building plan approved from BMC – IOD.
6 Keeps more purchaser in waiting to sale the demanded area at higher rate
on IOD , to collect fund / cost of rent & corpus amount.
7 Building design & plan prepared & submitted to BMC for approval – IOD.
8 Existing members vacates building to allow the construction.
9 Appoints contractor to take - do only construction work, in exchange of / in
lieu of salable carpet area proportionate to total construction cost.
 Contract Re - development
PMC prepares Legal – Technical – Financial – workable feasibility report.

SGBM approves the report , Agrees to allocate the work to designated professionals
and expects them to perform.
PMC – Architect prepares concept plan – SGBM approval

Concept plan – PMC to search for options & proposals of finance procurement /
modalities. Through ( members + relatives + investors + fund houses + Banks , etc. )
Funds necessary to do building plan approval till – IOD , assured & collected at
society.
Keeps more purchaser in waiting to sale the demanded area at higher rate on IOD ,
to collect fund / cost of rent & corpus amount
Building design & plan prepared & submitted to BMC for approval – IOD.

Tender floated to appoint contractor cum developer to take - do only construction

work, in exchange of / in lieu of salable carpet area proportionate to present market
rate.
Existing members vacates building to allow the construction.
 Self Redevelopment
PMC prepares Legal – Technical – Financial – workable feasibility report.

Collects 25% fund from members.

Plan submitted to BMC for approval – IOD .

Members arranges required project fund through themselves or BANk.

Tender floated to appoint contractor cum developer to do only construction work

against payment.

Members arranges & finances for transit accommodations.

Existing members vacates building to allow the construction.

Construction takes place as per order .

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NEXT STAGE
Program the redevelopment with
basic to remain intact.
We all need to think deep and
explore better possibilities.

Thanks
Rex Con Cor Consultants Pvt. Ltd.
ANUP GUPTA
Gruha Sankalp Sanstha

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