The state government is expecting to rope in developers from China for redeveloping Dharavi, also known as Asia’s largest slum. Senior officials from the housing department said that there is possibility of Chinese developers bidding for the redevelopment project for which the government expects to float global tenders within a month.
In all, the redevelopment of the five sectors of Dharavi is divided between Dharavi Redevelopment Board (DRP) and Maharashtra Housing and Area Development Authority (Mhada). Out of the five sectors, DRP will be the nodal agency in redevelopment for sector one to four and sector five is being looked by Mhada.
“Going by the global real estate market and our discussions with various global real estate experts, we are hopeful that developers from China will apply for the tenders,” said an official who did not wish to be named.
He further added, “One reason behind it is the recent downturn of real estate market in China. Their developers are looking to explore opportunities in other countries, including India. Also, there is excess housing stock available currently in the Chinese real estate market and the developers are looking to invest in other countries to speedily recover the total capital invested in construction. In such cases, there are possibilities that Chinese developers may work in joint venture with Indian developers.”
Recently, the National Bureau of Statistics in China had reported the unsold apartments in the smaller cities of China. The report said there has been rise in price in cities like Shenzen, Beijing and Shangai, but the demand is not growing as compared to the prices by which the consumption of housing stock is taking time.
The long pending Dharavi redevelopment project got a nod by chief minister Devendra Fadnavis on January 6, 2016. The tenants are set to get houses of 350 sq. ft instead of 300 sq. ft as recommended by the erstwhile Congress-NCP government.
“The tenders will be floated after the DRP submits a plan of what it will do with the excess land bank or say housing stock which will be generated after the redevelopment of Dharavi,” added the official.
