Frequently Asked Questions
1. What is a Feasibility Report for a society redevelopment project?
A Feasibility Report is a detailed study that assesses whether a society’s redevelopment is technically, legally, financially and practically viable.
2. Why is a Feasibility Report important for society?
It helps the society understand its actual development potential before approaching developers. It provides a clear basis for deciding the redevelopment model, expected member benefits and the terms that can reasonably be negotiated with developers.
3. Why should we appoint an Architect/ PMC for feasibility?
An Architect/ PMC represents the society’s interests rather than a particular developer. They evaluate the development potential independently, prepare the feasibility study and help the society compare and negotiate developer’s offers objectively.
4. What information is required to prepare a Feasibility Report?
Typically, documents such as the property card/PR card, conveyance documents, approved plans, existing area details, society registration documents( If applicable), plot measurements, property tax records and other available development-related documents are required.
5. What does the Feasibility Report tell society members/ owners?
It gives an overall picture of the project, including the plot potential, permissible development, existing and proposed areas, member’s/ owner’s benefits, possible sale component( area), financial implications, project constraints and redevelopment possibilities.
6. How is the development potential of our plot calculated?
Development potential is assessed based on the plot area, applicable DCPR provisions, FSI/TDR provisions, reservations, road width, setbacks, height restrictions, and existing structures.
7. How much additional area can each member/occupant get after redevelopment?
The additional area depends on the plot’s development potential and the redevelopment model.
8. What is FSI and why is it important in redevelopment?
FSI (Floor Space Index) determines how much construction can be done on a plot relative to its area.
9. Can the Feasibility Report determine the exact number of floors in the new building?
It can provide an indicative assessment of the likely development configuration. However, the final number of floors depends on detailed architectural planning, height restrictions, fire and safety requirements, aviation restrictions, setbacks and approvals from the relevant authorities.
10. How is Corpus Fund determined?
Corpus is generally determined through negotiations between the society and prospective developers. The feasibility study provides a basis for negotiating a reasonable corpus. In case of owner redevelopment, the corpus fund for tenants/occupants can also be estimated.
11. How should the society determine the appropriate rent?
The society should assess prevailing rental values in the surrounding locality, expected project duration, escalation provisions and the overall redevelopment package while negotiating with developers.
12. How long does the redevelopment process take?
The overall period depends on approvals, developer selection, documentation, construction and statutory processes. A feasibility study can provide an indicative project timeline, but the final timeline should be clearly agreed with the selected developer.
13. Does the Feasibility Report help us select a developer?
Yes. It establishes the plot's development potential and expected requirements, allowing the owner/society to compare developer proposals on parameters such as additional area, corpus, rent, amenities, project duration, specifications and other commercial terms.
14. Should we approach developers before preparing the Feasibility Report?
It is generally beneficial to understand the society's development potential first.
15. Can different developers offer different additional areas?
Yes. Offers can differ because developers may have different construction costs, sales assumptions, financing structures, design approaches and commercial strategies.
16. What other benefits can members/occupants negotiate apart from additional area?
Members may negotiate corpus, transit rent, rent escalation, shifting charges, parking, amenities, specifications, bank guarantees, security deposits and project completion timelines, depending on the project.
17. What happens if the development potential is lower than expected?
The feasibility study identifies constraints at an early stage. If the potential is limited, the owner/society can explore alternative planning options with reference to different applicable development provisions.
18. Can the feasibility study be revised later?
Yes. In case additional /new documents, revised regulations, survey information or other material information becomes available, the feasibility assessment can be or needs to be updated accordingly.
19. What role does the Architect/ PMC play after the Feasibility Report?
The Architect/ PMC can assist the society in preparing tender/EOI documents, inviting and evaluating developer proposals, conducting negotiations, reviewing designs and coordinating the redevelopment process as per the scope of appointment.
20. What should our society do after receiving the Feasibility Report?
The society should review the findings with its members and advisors, understand the development potential and member benefits, finalise the redevelopment strategy, prepare appropriate tender/EOI documents and invite proposals from suitable developers for comparison and evaluation. The Architect/ PMC can assist the society in this process.