Redevelopment in Ahmedabad resumes after jantri jump, Real Estate News, ET RealEstate
![](https://yoursproperties.com/wp-content/uploads/2023/10/redevelopment-in-ahmedabad-resumes-after-jantri-jump.jpg)
AHMEDABAD: The Ahmedabad real estate scene is seeing a significant number of redevelopment deals back on the table after the doubling of jantri rates.
According to estimates, some 30 redevelopment deals have been finalized in the last three months and about 500 societies are in deliberations with developers over offers that have been revised after the rate increase.
Interestingly, residents of certain societies that are just 15-20 years old are also approaching builders for redevelopment. However, developers say redevelopment is unviable for most such societies due to FSI constraints.
After the jantri increase, the cost of FSI rose significantly, making redevelopment projects unviable and 90% of the deals that were being negotiated were cancelled. After the increase, developers started making revised offers, giving less built-up area and incentives. Property owners have now started accepting such offers.
Jitendra Shah, president of the Urban Redevelopment Housing Society Welfare Association, said, “Redevelopment deals were put on hold after the jantri increase because the earlier offers were no longer viable because of the increased cost of FSI. However, redevelopment activity is taking off again, as there are a large number of old societies that need it. We have seen some 30 societies finalize revised deals in the last three months and about 500 societies are in the final stages of negotiations with developers.”
Shah added that a number of societies in areas such as Vejalpur, Bopal and Chandlodia are less than 25 years old, but are approaching builders for redevelopment. However, due to FSI constraints, many such projects are unviable.
Jigar Bharwad, director of Yashasvi Group, which is active in redevelopment projects, said, “There are many societies that are less than 25 years old but have various problems and the residents unanimously agree on redevelopment and approach builders. However, most such societies have already used around 2.5 FSI and can currently utilize just about 2.7. Such projects are thus not viable for developers. Societies that are in Transit Oriented Zones (TOZs) can get FSI of up to 4, and such projects are viable in these zones, but such societies are few.”