Now Dharavi huts are hot property

MUMBAI: There is a new destination in the overheated Mumbai realty market — Dharavi. Property prices in Dharavi are going through the roof and  investors, speculators, and builders are all heading there to pick up a hut or two.

But be careful before you make that investment — there is confusion on their legal status, and also on the redevelopment plans of Asia’s largest slum.

Today a shanty in Dharavi, just 10 feet by 10 feet, commands over Rs5 lakh, twice as much as before the bidding began for the Dharavi Redevelopment Project. For commercial property, the going rate is three to four times as much.  

“The cost of com”ercial property is  Rs20,000-25,000 per sq ft, while residential prices have gone up to Rs  5000-7000 per sq ft, as buyers are trying to get properties in bulk,”  said Arputham Joa”uim, president of the National Slum Dwellers  Federation of India. “These buyers think they”can get a gold mine and  have begun offering any amount to property owners.”

The government has alr”ady received bids for the Dharavi Redevelopment  Project, and is expected to shortlist these in a week or two. The  successful bidders for the seven redevelopment zones are supposed to be  selected both on the basis of their capability to execute the project  as well as the price they quote for acquiring the land.

Reliable sources close to the process told DNA that the government is  expected to pass on 70 per cent of the bid amount to the owners of  properties in Dharavi during land acquisition.

Even though there is no  clarity on this yet, expectations are that prospective developers are  ready to pay a hefty premium to get the rights to the project, given  its potential to be developed commercially on the lines of the  neighbouring Bandra-Kurla Complex, and this is pushing up property  prices.

The government has stated sale of land in Dharavi has been put on hold  during the process of finalising the redevelopment project. But locals  say many privately-owned properties are being put up for sale in Ramar  wadi, ML Wadi, Amina Chawl, Rajaballi compound, VK Wadi, Kalyan Wadi  and Asra Estate.

Of late there has been talk of a hotelier from the western suburbs  showing interest in buying three large private properties at any cost.  The developer, contacted by DNA, confirms the interest in the  properties, but says no deal has been struck.

“We have been making the rounds in Dharavi for the last 10 yea”s, but  it has been an unfulfilled dream. We are interested, but nothing is  clear about who is going to be developing the land. No one knows the  processes,” said GS Bawa, director of Bawa International hotel.

All this”has led to pressure on long-time tenants by landlords who want  them to move out. “Landlords are threatening to cut off water and  electric supply to make tenants vacate their chawls,” said Kamaraj  Bhau, a social worker who runs educational classes in Dh”ravi.

Locals say property buyers are not limiting themselves to commercial  properties. They have also approached housing societies. “There is talk  of many deals taking place, but none of the recent deals are”legal  since the transfer of title is being disallowed,” claims Hukumraj  Mehta, a Congress leader in Dharavi.