By Dr Sanjay Chaturvedi
If you are buying flats in Redevelopment Projects, you will be paying more than the new project. In redevelopment, almost half of the flats are already occupied and to be occupied by the existing members. Builder has to pay for their rents, bank gurantee, shifting, corpus fund and other incidential charges which starts from conveyance and gathering documents like PR card, Survey etc.
Builder also pay for construction of not only existing building but also additional FSI which he will construct besides the cost of demolition and clearing site for new construction. That is, housing existing members in rehab portion and also constructing Additional salable FSI. He has to pay for TDR, reduce the plot in road cutting, Premiums on Fungible FSI, bribing, bribing the office bearer of society, NOCs from BMC, Professional fees to architects, RCC consultants and other liasioning professionals. Cost of additional water line, sewage line and other facilities to be added to construction cost
Besides sale and admin cost, builder will put his profit margins and margins of investors who have invested at the time of negotiation with society.
In a new construction, you need not worry about neighbors and their income level, you will be charged less because all the incidental charges like Rent to member etc will be eliminated.Hence you will find a sea difference in Redevelopment Projects and new projects. For example, We have two rates in Kandivali. One is Rs.8500/- and other are selling at 14500/- psf.