AHMEDABAD: For many residents in aging housing societies, redevelopment was anticipated to bring larger homes, improved amenities, and safer structures. However, a growing number of families are finding themselves paying rent for months while projects remain stagnant. Throughout Ahmedabad, redevelopment initiatives are experiencing delays due to weak housing demand, rising construction costs, and conflicts among society members, making builders hesitant to proceed until all approvals are secured.
A recent case near Parimal Garden illustrates how quickly plans can fall apart. Two housing societies struck an agreement with a developer about three years ago, but disagreements among some members prevented the memorandum of understanding (MoU) from being finalized.
Rajkumar Bhakkad, secretary of one of the societies, shared, “Many families left their homes after the builder assured us that redevelopment would proceed soon. We moved into rental apartments because we were told the project would commence shortly. The builder covered our rent for about a year, but when some members disagreed, the builder pulled out.”
“For over a year, we have been paying our own rent while our society remains empty,” he lamented.
The societies are currently in talks with a different developer, but negotiations have become more stringent. “The new builder has stated they will only cover rent after all members agree and the project receives RERA registration,” Bhukkad explained.
Developers note that such caution has become standard practice. Jitendra Shah, president of the Urban Redevelopment Housing Society Welfare Association, remarked that while the potential for redevelopment in Ahmedabad is significant, current market conditions are impeding progress. “The promise of redevelopment is tremendous, yet numerous challenges are causing delays,” he indicated.
Shah mentioned that at least 20 housing societies signed redevelopment MoUs over a year ago, but construction has yet to kick off. “The members are anxious for work to commence,” he stated.
He further added that the sluggish market has made it difficult for some developers to maintain rent payments for families who have vacated their properties. “We’ve seen instances where builders have had trouble covering rent due to slow apartment sales,” Shah noted. “Societies should prioritize reaching complete agreement and select builders with a successful track record.”
According to the association, over 500 housing societies in Ahmedabad have either completed redevelopment, are under construction, or have formalized redevelopment agreements, with discussions taking place in an additional 400 societies.
Developers assert that the decline in apartment sales has further strained financial resources. Industry insiders estimate that completed projects are facing around 20% unsold inventory, which hampers cash flow and complicates construction financing and rent disbursements.
Developer Kartik Soni stated that the calculations for redevelopment have significantly shifted. “Construction costs have surged. Projects that were financially sound a few years ago need renewed evaluation today,” he said.
He also proposed a standard operating procedure for projects where a substantial majority of members are in favor. “If 75% of members agree, there should be a clear SOP for moving forward with redevelopment,” he argued.
