Mumbai Bets Big on Redevelopment

Mumbai is living through one of the biggest urban makeovers in its history. Across the island city and the suburbs, old societies and crumbling cessed buildings are making way for shiny new towers that promise safety, style, and comfort. Redevelopment is no longer a side trend.

It now drives nearly 30 to 40 percent of the city’s new housing supply. By the end of the last financial year, more than 31,000 society redevelopment projects had been approved. That number alone tells the story of both urgency and opportunity.

Why Redevelopment, and Why Now?

The most urgent reason is safety. Every year before the monsoon, the BMC marks hundreds of buildings as dangerous under the “C1” category. In 2025, MHADA declared 96 cessed buildings in South Mumbai as extremely dangerous and asked residents to vacate. For many families, redevelopment is not just about better homes, it is about survival.

Policy has also played a strong role. Under the DCPR 2034 framework, provisions like Section 33(20)(B) that allow higher FSI have made projects financially viable for developers and societies. Deals that once looked impossible now make economic sense.

As from Ekta World puts it, redevelopment is much more than new towers. “Rehabilitation and redevelopment of buildings are a sustainable way of living. Citizens benefit from better infrastructure, ecosystems, and a balance between work and life,” Vivek Mohanani, CEO and Managing Director of Ekta World highlights.

Market Overview: Strong Demand, Big Bets

Despite the economic jitters, the demand of homes has remained bullish in Mumbai. Between January and July 2025, 88,639 property transactions took place in the city the best-ever performance in more than 10 years of measured activity. Over 12,000 registrations were already made and a Rs 1,100-crore stamp duty has already been received in July alone.

Developers are not holding back either. In just a few months, projects worth Rs. 18,000 crore were announced. Cluster redevelopments such as Dharavi and Motilal Nagar are finally moving ahead after years of delays, while MHADA has revived the Kamathipura cluster tender.

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As Mumbai goes into a massive redevelopment wave, luxury redevelopment is emerging as a upcoming trend alongside. Developers are targeting ageing buildings chawls, and small-scale societies in areas like South Mumbai, Santacruz and Juhu. Areas in Central Mumbai like Worli, Dadar, lower Parel and Sion are facing massive change while in the Eastern Sub necessarily Chembur and Ghatkopar also have a redevelopment trend.

In the Eastern Suburbs, developments such as Chembur and Ghatkopar are experiencing society and housing redevelopment with old residential complexes and cooperative societies being jettisoned in favour of modern and high-rise developments. In the western belt, from Bandra to Santacruz, old mid-rises are being replaced by sleek high-rises that add modern apartments right in the city’s heart.

 “With the metro and new road corridors, buyers now see suburbs as extensions of prime city centres. Redevelopment is perfectly aligned to this demand,” Anuj Goradia, Director of Dosti Realty notes.

Adding to this sentiment, Mayfair Housing underlines the long-term vision. “Redevelopment is about more than square feet; it is about trust, timely delivery, and transforming how communities live. Our focus is on creating homes that are future-ready and aligned with the aspirations of modern Mumbai,” Aditya N Shah, Director of Mayfair Housing shares.

The Challenges Ahead

As much as it promises, redevelopment is hardly an easy process. There is a tendency of societies to disagree over terms of space, rent, and compensation. BMC, MHADA and SRA approvals take months or years. Increasing expenses such as after the 2025 ready reckoner assignment have made the negotiations even more difficult. Then some risks associated with the execution, be it paying the down payments in time or carrying out the relocation smoothly and the project itself being delivered without delays.

Civic pressure is another reality. More towers mean more cars on the roads, more demand on drainage, and more load on transport networks. Anex Advisory, which works in this space, stresses the importance of discipline. “The biggest challenge in Mumbai’s redevelopment is not intent but execution. Projects often stall between society expectations and developer delivery. At Anex, our process is rooted in structure, accountability, and transparency, helping societies and developers see projects move from paperwork to reality.” Sanjay Daga, CEO and Founder of Anex Advisory notes.

APICES, which advises and manages redevelopment projects, highlights the importance of transparency. “Society members often fear being left in the lurch. Our role is to ensure clarity, accountability, and a process where both residents and developers can move forward with confidence,” Hardik Pandit, Director of APICES explains.

Opportunities: Unlocking Value for the City

Despite the challenges, the upside is undeniable. Redevelopment replaces unsafe structures with earthquake-resistant, fire-compliant towers. Families get the lifestyle upgrade they once only dreamed of, modern layouts, green spaces, parking, and amenities that make everyday life easier. Neighbourhoods like Byculla, Sewri, and Kamathipura are being given a fresh identity, which in turn boosts property values.

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Sustainability has also entered the conversation. New redevelopment projects contain such features as solar energy, rain water harvesting and green building certifications. This is an aspect of environment friendly development which is both needed and timely in a city that faces serious environmental issues. The redeveloped homes have on average increased its market value by 40 to 50 percent benefiting the occupants and the investors.

Developers know that discipline matters as much as vision. As Chintan Sheth, Chairman and Managing Director of Sheth Realty said “Redevelopment is not only about land parcels. It’s about financial discipline, legal clarity, and the ability to unlock intricate, legacy projects.”

Mehta Realty too is playing the long game. Ruchit Mehta, Partner, Mehta Realty says “Mumbai is faced with a complex paradox of limited open plots and an ever-growing demand for commercial and residential spaces. Redevelopment presents a tremendous opportunity to decongest existing hotspots within the city. It can also lead to value creation in upcoming neighbourhoods that have been brought to the forefront by recent infrastructure projects such as the new Metro lines and the Coastal Road, which have made the city more accessible than ever before. For developers, our focus should be on the creation of green and sustainable projects, which will help rejuvenate of local communities. In addition to unlocking value for residents, redevelopment can thus help create a more future-ready Mumbai.”

The future of Mumbai’s redevelopment wave rests on the delivery of mega projects. If executed on time and with promised quality, they could set benchmarks for cluster-based redevelopment and unlock confidence across thousands of smaller societies. Redevelopment is all about making this city of dreams safer, stronger, and more sustainable for decades to come.