The lack of vacant land parcels in the core areas of Chennai is driving builders to the suburbs to launch new and larger residential projects. But for those still wanting to buy new residential apartments within the city, redevelopment projects offer a viable option.A redevelopment project involves razing an old apartment building owned by multiple residents and replacing it with a modern development. For existing owners, the new building can offer amenities such as lifts and ample parking to meet their needs. In case of higher floor space index (FSI), existing owners get larger apartments, while the residual and leftover FSI will be sold by the builder to new buyers. It also allows builders to sell additional units to outsiders by using the additional FSI permitted by the CMDA (Chennai Metropolitan Development Authority). But this is easier said than done.
A view of the multi-storey residential houses.
| Photo Credit:
B. JOTHI RAMALINGAM
Uncertainy creates fearFor instance, Rajesh Chandramouli is president of corporate affairs at Shriram Group, a financial services company. He and his fellow residents have been trying to redevelop their 24-apartment complex in Adyar for over five years now, but with little luck. Arriving at a consensus and getting everyone on the same agenda has been proving to be difficult.“Redevelopment is a difficult corner to turn. While everyone may, in principle, be for it, many fear dislocation and the uncertainty that the entire process brings,” says Chandramouli. “Besides, if a new person buys into the complex, convincing them is an arduous task as nobody buys in for demolition and waits. The reality is there cannot be a perfect offer that satisfies all.”The residents began exploring redevelopment options bcause the apartment complex is more than 30 years old and lacks lifts and designated car parking. Moreover, with the road level being raised over the years, the ground-floor apartments have started getting inundated during the monsoon. The residents felt redevelopment could address several of their problems, but consensus has remained elusive, with contentious issues such as GST and the cost of interiors hampering meaningful progress in discussions.Pricing issueChandramouli is not alone in facing difficulties in arriving at a consensus because several factors come into play before the finalising a builder. For V. Sandhya Balachandar, a lawyer and resident in Nanganallur, it took two-and-a-half years to bring all the member residents to agree on a particular builder for redevelopment.“Ours is a 16-apartment complex with 13 owners. Initially, the residents recommended five or six builders, but differences emerged over the quality of construction and cost. “Since the residents include senior citizens, cost became an important criterion,” says Balachandar. “Most builders were offering good-quality construction, unlike in the past. Eventually, we reached a consensus and signed an agreement with a builder.”She laments that the building’s location on a 20-ft road and its proximity to the airport mean it is not eligible for any additional FSI. However, the new development will offer ample car parking and a lift.Woes of TNHB
