Experts say this will motivate more housing societies to opt for self-redevelopment as the major hurdle to get funding is now solved
A number of redevelopment projects in the MMR have been stuck in litigation between the developer and housing society. File pic
The RBI’s June 8 announcement, allowing district and state co-operative banks to use 5 per cent of their total commercial real estate asset for self-redevelopment will come as a boon for thousands of stalled projects. Real estate experts have welcomed the decision and said self-re-development provides maximum security to the members, less litigation and provides additional benefits to the members in the form of additional area, additional corpus over and above what the developer offers.
mid-day in its article on April 30 had highlighted the pros and cons of self-redevelopment.
Advocate Shreeprasad Parab, director at Maharashtra State Housing Federation Ltd, said, “Self-redevelopment is the fulfilment of the dream of affordable housing by means of sharing the developer’s profit among all the members and also providing flats at cheaper rate. The biggest hurdle of self-redevelopment was getting the funds required to develop the property. With the Reserve Bank of India’s decision, this has become easier.”