Construction
The build cost of the new building — drawn in milestones like any project facility, against the saleable component.
Redevelop the building — on the society’s terms.
Society Redevelopment Funding in Mumbai
Whether your society goes self-redevelopment to keep the developer’s margin, or builder-led to transfer the risk, the funding has to cover construction, corpus, transit rent and premiums — structured around the extra saleable area the plot unlocks. We model both routes and arrange the capital. CA + ex-banker led, with a Mumbai office. ₹4,250 Cr+ facilitated since 2011.
Self-redev & builder-ledDCPR 2034 fluentMumbai office
A track record since 2011, in numbers
₹4,250 Cr+
Capital facilitated across sectors₹550 Cr
Largest single facility structured2 routes
Self-redev & builder-ledMumbai
Office in Andheri EastMumbai redevelopment works because of extra area. An ageing building can usually be rebuilt to a far higher area than it occupies today — through incentive FSI, TDR and premium FSI under DCPR 2034, with special provisions for cessed and MHADA buildings. That incremental saleable area funds the new building, the members’ bigger flats, the corpus and the rent. The whole game is structuring the funding around it.
Finnova Advisory is an advisory firm — we structure the file and arrange the capital; the lender sanctions and disburses. Scheme terms, FSI rules and consent thresholds change — we confirm the current position for your society.
The first decision
Self-redevelopment vs builder-led
Before any funding, the society has one big choice: redevelop itself and keep the developer’s margin, or hand the project (and the risk) to a builder. We model both on your actual plot and numbers.
FactorSelf-redevelopmentBuilder-led
Who controls the project Self-redevelopmentThe society Builder-ledThe developer
Developer's margin Self-redevelopmentRetained by members Builder-ledKept by developer
Funding Self-redevelopmentLoan to the society Builder-ledDeveloper-funded
Risk borne by Self-redevelopmentThe society Builder-ledThe developer
Best when Self-redevelopmentStrong plot + good management Builder-ledSociety wants no risk/borrowing
Self-redevelopment can return the developer’s profit to members, but the society takes on project, funding and execution risk — so it needs strong management plus the right advisory and contractor team. We give the committee an honest, modelled comparison, not a sales pitch for either route.
What the funding covers
Four things redevelopment capital has to pay for
Redevelopment funding isn’t just a construction loan — it has to carry the members and the statutory costs through to handover.
Transit rent
The rent paid to members while they’re out of their homes — a real, ongoing cash cost the funding must cover for the project’s duration.
Corpus
The one-time corpus paid to members as compensation and for higher future outgoings — funded upfront, recovered from sales.
Premiums & FSI
The premiums, TDR and incentive-FSI costs that unlock the extra area — the TDR and premium funding that makes the whole project viable.
Why Finnova
The financial brain for your redevelopment
Most societies are advised by architects, PMCs and lawyers — but not by people who structure the money. Six reasons that gap matters.
Honest route modelling
We model self-redevelopment vs builder-led on your plot and numbers, so the committee decides on facts — not on whoever pitched last.
Funding the whole stack
Construction, corpus, transit rent and premiums — we structure capital that carries all of it through to handover, not just the build.
Area-led structuring
We build the funding around the incremental FSI, TDR and premium area — the saleable component that actually repays the loan.
The right self-redev lender
We know which cooperative and institutional lenders run live self-redevelopment schemes, and place the society’s file accordingly.
DCPR & RERA fluency
Incentive FSI, cessed/MHADA provisions, MahaRERA on the sale component — we structure to all of it, with a Mumbai team on the ground.
CA + ex-banker on the file
The people modelling your project and arranging the capital have sat on both sides of a credit committee.
Consultation
Tell us about your society & plot
One conversation tells you whether self-redevelopment stacks up on your plot, what funding it needs, and how the numbers compare with a builder-led deal. No pitch — a straight read from people who structure redevelopment funding, with a Mumbai office.
Thank you — your enquiry has been submitted
We’ve received your details. A senior member of our team will review them and get back to you within one business day. Everything you’ve shared stays strictly confidential.
FAQ
Redevelopment funding, answered
It is the capital a cooperative housing society or its appointed developer needs to redevelop an ageing building — covering construction, the transit rent paid to members, the corpus, and statutory premiums. In Mumbai this can be structured as builder-led redevelopment (a developer funds and executes in exchange for the saleable component) or self-redevelopment (the society borrows and controls the project itself). We structure and arrange both.
In self-redevelopment the society redevelops its own building rather than handing it to a developer — keeping the developer’s margin for its members. It is funded by a dedicated loan to the society, secured against the project’s saleable area and cash flows. Cooperative-sector lenders have offered self-redevelopment schemes funding a large share of project cost with a construction-period moratorium; exact loan-to-cost, rate and limits vary by lender and change over time, so we confirm the current terms for your society.
Self-redevelopment can capture the developer’s profit for the members and keep them in control, but it demands the society take on project, funding and execution risk — so it needs strong management and the right advisory and contractor team. Builder-led redevelopment transfers that risk and needs no borrowing by the society, but the developer keeps the upside. The right choice depends on the society’s appetite, the plot’s potential and the numbers. We model both and let the members decide on facts.
Redevelopment in Mumbai works because the plot can usually be built to a higher area than the old building used — through incentive FSI, TDR and premium FSI under the DCPR 2034 framework (and special provisions for cessed and MHADA buildings). That extra saleable area is what funds the new building, the members’ larger flats, the corpus and the rent. Structuring the funding around that incremental area is the heart of the deal.
Yes, for the sale component. The freshly built flats sold to outside buyers fall under MahaRERA registration and the project-account rules, while the rehab component for existing members is governed by the development agreement and cooperative-society law. A clean structure that satisfies both is what lenders and buyers need to see — and what we build.
We are an advisory firm, not a lender. We model the project, advise self-redevelopment versus builder-led, structure the funding around the incremental saleable area, prepare the file and arrange the capital from the right lenders — the lender sanctions and disburses.
Further reading
Guides on redevelopment funding
The self-redev decision, and financing the FSI that makes it work.