Mumbai Sees Rs 18,000 Cr Redevelopment Boom Despite Cooling Sales

The real estate market in Mumbai is experiencing a redevelopment boom, with more than Rs. 18,000 crore worth of projects revealed by at least five top developers in the last half-year, even as sales of residential properties are reported to be softening overall. It is the view of industry experts that this upsurge is a tactical consolidation by developers to bring in long-term pipelines following years of robust sales.

Major developers such as Rustomjee Group, Arkade Developers, Mahindra Lifespace, Puravankara, and Sunteck Realty have all announced large-scale redevelopment proposals. Rustomjee alone has announced projects worth Rs. 7,700 crore, and Arkade Developers has launched eight projects worth Rs. 5,000 crore, primarily in the western suburbs. 

Bengaluru-based Puravankara and Mahindra Lifespace too have thrown their hat into the ring, with redevelopment proposals worth over Rs. 5,000 crore in aggregate.

Key Highlights-

• Mumbai sees more than Rs 18,000 crore in redevelopment projects from top builders
• Rustomjee and Arkade lead with major launches in western suburbs
• Developers bet on redevelopment despite falling Q2 sales

Manan Shah, MD of MICL Group said, “Redevelopment is turning out to be the preferred route to unlock value in prime locations and provide new-age housing. It's an eco-friendly way to address increasing urban demand in a land-scarce city like Mumbai."

Also Read: Mumbai Revamp 3.0 - How Redevelopment is Shaping the City's Future

In spite of a 34 percent quarter-on-quarter decline in housing sales and a 61 percent decline in new launches during Q2 2025, developers are optimistic about the redevelopment segment.

Ritesh Mehta, Senior Director, JLL India said, "Although sales are somewhat soft currently, listed developers carry healthy backlogs over the last few years, which will act as a buffer to withstand short-term declines. A lot of redevelopment stock will come to the market over 12–18 months."

Also Read: Puravankara to Redevelop 8 Societies in Chembur, Mumbai

Arpit Jain, Director of Arkade Developers further said, "We are bullish and confident about redevelopment in localities such as Malad and Andheri. These schemes will witness good demand when they are launched."

Experts warn that the momentum will ease in 2026, but till that time, redevelopment is a consistent theme in Mumbai real estate's playbook.