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Keystone Realtors: Keystone Realtors secures 3-acre redevelopment project in Mumbai’s Malad west

Rustomjee Group’s Keystone Realtors has secured rights to redevelop the plot and premises of two housing societies spread over nearly 3 acres in Mumbai’s Malad west suburb.

The project will lead to sale potential of over 3.42 lakh sq ft of RERA carpet area with the expected Gross Development Value (GDV) of over Rs 1,200 crore.

The redevelopment project entails rehousing 342 existing members of both the societies–Veena Nagar Co-operative Housing Society Ltd and NeelKamal Ghruh Co-operative Housing Society Ltd.

“We are chosen as redevelopment partners by two societies in the vibrant locality of Malad West on the combined land spanning over 12,120 sq meters and boasting a combined GDV of Rs 1,200 crore. This is a welcome trend wherein societies in a cluster are getting together leading to development of gated communities and larger layout,” said Boman Irani, CMD, Keystone Realtors.

This development is in line with the developer’s strategy to build a diversified portfolio across ticket sizes and will further strengthen Rustomjee presence into the growing western suburbs of Mumbai. The project is expected to be launched in the next calendar year.

With these additions, Rustomjee has already added 8 new projects in the current financial year with a total GDV of over Rs 7,000 crore. Last week, Ajmera Realty & Infra India Ltd (ARIIL) and Keystone Realtors entered into a joint venture to undertake redevelopment of a housing society in Mumbai’s plush Bandra west locality. Both the companies will hold a 50% stake in the joint venture. This project is expected to generate a GDV of Rs 760 crores.Real estate projects involving redevelopment of old housing societies and rehabilitation are the mainstay of Mumbai region’s property market as the land-starved city and its peripheral areas have few vacant land parcels.

In July, the government of Maharashtra said that a member of a housing society that undergoes redevelopment need not pay stamp duty on the allotted permanent accommodation as part of the project.

Following this, the member of the housing society undergoing redevelopment is expected to pay only Rs 100 as stamp duty, while the principal agreement between the development and the housing society will be charged as per the conveyance.

The state government’s decision is expected to help push redevelopment of many old and dilapidated housing societies across key cities of the state.

Mumbai property market has continued its record-setting spree to surpass all the benchmarks and scaling a new all-time high in 2023 with its best annual performance ever despite higher interest rates and rising property prices. This performance is driven by luxury, premium, and mid-income segment properties.

The country’s commercial capital has achieved a new peak in terms of both, registration of properties as well as state exchequer’s revenue collection through stamp duty charges.

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