When a building gets too old or damaged, it is usually redeveloped. Renovating a home involves a lot of modification in the structure as compared to its old self. Some of them are:
Change in carpet area
Usually, while renovating a home, there is additional space provided to its existing member. This additional area depends on the sq. ft. area of the apartment. The new Government scheme offers as much as 35% additional areas to every existing member. This additional space is provided irrespective of the total area before the redevelopment.
Also in addition to this, sometimes the builder gives 7% extra area to existing members.
You may have observed in few redevelopment projects that the upper floors are bigger than lower floors. A builder cannot increase floor space. A standard FSI i.e. Floor Space Index is set by the Government. It is the ratio between allowable construction spaces to actual space. For instance, if the construction space is 100 sq. ft. and FSI is 1.6 then the actual space shouldn’t be more than 160 sq. ft. hence, there are some floors which aids the builder in earning revenues.
In a project that has restriction in increasing floor level or height, the builder plays smart and provides spacious upper floors and sells them at a high price.
This works only in case of projects with restrictions.
Along with floor area, facilities also differ. This is not generally known but the amenities offered to existing members, and new members may also differ. For example, if a society is redeveloping then the builder gives high-class tiles to current members, whereas the new ones get Italian marble flooring. Hence, renovating a home works in favour of the existing member. Similarly, for bathrooms too, a glass partition is installed for existing apartment owners and no such installation is done for new members.
Moreover, existing members also get tax benefits.