Does a pagdi tenancy have value?

Yes, often a substantial one, especially if the building is likely to be redeveloped. The report values the tenancy as a tenancy, not as ownership.

Our building is cessed. What does that mean for value?

It usually means old tenants, low rents and special redevelopment rules. The value depends largely on what redevelopment would give each occupant.

We are tenants in a cessed building. Do we get anything in redevelopment?

Usually yes, tenants in cessed buildings are generally entitled to new accommodation in a redevelopment. The value of that entitlement is what the report puts a figure on.

Property valuation in South Mumbai

South Mumbai has some of India's most valuable property and some of its oldest buildings, often in the same street. Valuing a flat here means first working out what kind of interest is being valued: ownership, a pagdi tenancy, or a flat in an old cessed building heading for redevelopment.

Cessed buildings

Many buildings in the island city were built before 1969 and are cessed: their owners pay a repair cess, and repairs and reconstruction come under the building repairs board that is part of MHADA. These buildings often carry tenants on old rents and redevelopment rights under special rules. Their value depends heavily on that redevelopment potential.

Pagdi tenancies

A pagdi tenant does not own the flat but holds a protected tenancy, often for generations, and that tenancy itself has value. It can be transferred for a premium, and in a redevelopment the tenant usually receives a new flat. We value pagdi tenancies regularly, and the report states clearly that it is a tenancy, not ownership.

Ownership flats

In Malabar Hill, Cuffe Parade and Napean Sea Road, ownership flats in society buildings are valued from resales in the same building and nearby. The floor, the view and the age of the building are all taken into account.

Probate

Mumbai is a presidency town, and a will dealing with property here usually needs probate from the Bombay High Court before it can be acted on. The probate petition needs a stated value. Inherited property in Mumbai.

South Mumbai questions

Does a pagdi tenancy have value?: Yes, often a substantial one, especially if the building is likely to be redeveloped. The report values the tenancy as a tenancy, not as ownership.
Our building is cessed. What does that mean for value?: It usually means old tenants, low rents and special redevelopment rules. The value depends largely on what redevelopment would give each occupant.
We are tenants in a cessed building. Do we get anything in redevelopment?: Usually yes, tenants in cessed buildings are generally entitled to new accommodation in a redevelopment. The value of that entitlement is what the report puts a figure on.

Checked by Parish Rao, Chartered Engineer and Government Approved Valuer (Registration number CAT-I/443/117/2000-01).

Page last checked on 8 November 2026.

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