Redevelopment involves significant costs which are beyond the means of CHS(Co-operative Housing Societies). Therefore, the CHS appoints an experienced Developer to bear all costs and to execute the project on Turnkey Basis. Broadly, the costs fall in the following categories:

− Cost of Planning, Engineering, Approvals/ Permits
− Construction Cost
− Cost of Relocation and monetary compensations to CHS
− Taxes, Duties etc


The Developer recovers his investment and profit by selling part of the additional carpet area to his buyers as flats, shops or offices. The surplus is provided to the members in form of bigger flats, modern amenities/ infrastructure and money/ corpus. Thus, the beneficiaries of the project are CHS, Developer and his buyers who later become additional members of the CHS. This is a win-win opportunity for the Developer and CHS. CHS monitors and controls the project by appointing their own Project Management Consultant (PMC).

This model is steadily evolving in Mumbai and holds great promise for other congested cities as well.