Mumbai redevelopment news: In the last six months, at least five real estate developers have announced redevelopment projects worth over ₹18,000 crore.

Mumbai’s real estate market is seeing a surge in redevelopment project announcements, even as overall housing sales begin to show signs of softening. In the past six months, at least five listed developers have unveiled redevelopment projects in the city, with a combined potential value of ₹18,000 crore.

Experts say this flurry of activity reflects a strategic move by developers to capitalise on strong sales over the past three years. By building a robust redevelopment pipeline, they aim to secure their sales book for the next three to five years. While this signals a phase of consolidation, experts caution that the current momentum may ease over the coming year.

Redevelopment announcements in Mumbai

In the last six months, Mumbai-based Rustomjee Group has announced at least three redevelopment projects in Mumbai with over ₹7,700 crore of gross development value (GDV), and Arkade Developers has announced eight projects in Mumbai with over ₹5,000 crore of GDV.

Bengaluru-based Puravankara Limited has announced the redevelopment of eight societies in Mumbai's Chembur with over ₹2,100 crore of GDV, and Mahindra Lifespace has announced at least three redevelopment projects with a GDV of over ₹3,000 crore.

K Raheja Homes in March 2025 secured the rights to redevelop Mumbai’s Palmera Cooperative Housing Society, widely known as 'Pleasant Palace'. The property, situated on Narayan Dabholkar Road in the posh Malabar Hill neighbourhood of South Mumbai, spans over 6,000 square meters, and its estimated development potential is approximately 3 lakh sq ft.

Bengaluru-based company, Prestige Group, has launched luxury projects at Marine Lines and Worli in Mumbai in the last two years, and is exploring more projects in South Mumbai.

Sunteck Realty, based in Mumbai, was appointed to develop the residential project on 2.5 acres of land in Mumbai's Andheri. The project is expected to generate 2.75 lakh sq ft of saleable area and has a GDV of ₹1,100 crore.

Why the rush for redevelopment?

Real estate developers say redevelopment is the most viable path forward in a city like Mumbai, where land is scarce and demand remains strong in key micro-markets. Acquiring projects in locations where the supply-demand equation works in their favour is seen as a safe and strategic move.

“We recently announced eight redevelopment projects with a projected gross development value (GDV) of over ₹5,000 crore, primarily in the western suburbs. We’re confident and bullish on the redevelopment market in areas like Malad, Santacruz, Andheri, Dahisar, and Goregaon,” said Arpit Jain, Director, Arkade Developers.

“These projects will take a few months to reach the market, but we anticipate strong demand given the quality we’re delivering. Our main focus is on acquiring large land parcels, and we’re aggressively pursuing that strategy,” he said.

“Redevelopment is emerging as the preferred pathway to unlock value in prime locations, optimise land use, and deliver modern, amenity-rich housing that aligns with the aspirations of today’s homebuyers. In a city like Mumbai, where land is scarce and much of the existing stock is outdated, redevelopment provides a sustainable and impactful solution to meet growing urban demands,” said Manan Shah, managing director, MICL Group.

“Particularly in the suburbs, redevelopment presents a rare opportunity to build at scale, upgrade infrastructure, and introduce lifestyle features that greenfield projects often can’t accommodate. That’s why we’re seeing a surge in announcements from suburban areas. Land parcels are larger, societies are better organised, and there’s strong demand for transformation," he said.

“In contrast, redevelopment in South Mumbai is more nuanced. Project scales may be smaller due to heritage and density constraints, but the value creation is significant. Here, redevelopment is focused on exclusivity, heritage restoration, and delivering ultra-premium experiences. While the pace may be steadier, the impact on the skyline and quality of life is no less substantial,” he said.

According to Sunteck Realty, even in prime locations, many older societies lack the modern conveniences and aesthetic appeal that contemporary homebuyers desire. The company said redevelopment not only bridges this gap but also significantly enhances the property’s value, making it a win-win for both homeowners and developers.

Why are developers announcing redevelopment projects despite softening of sales in Mumbai?

According to data shared by analytics firm Propequity, the Mumbai real estate market, along with Thane, Navi Mumbai, and Pune, saw a decline in housing sales and new launches in Q2 2025.

In Mumbai, housing sales dropped 34% year-on-year to 8,006 units in Q2 2025 from 12,114 units in Q2 2024. New launches also fell sharply by 61% to 4,949 units, compared to 12,610 units in the same quarter last year.

According to experts, the recent spate of redevelopment announcements by listed developers signals a phase of consolidation. However, this momentum may soften over the next year.

“The redevelopment activity by listed players reflects a consolidation of their strong sales over the past 3–4 years. That’s why we’re seeing a barrage of new project announcements, with supply expected to hit the market within the next 12 to 18 months, possibly even sooner,” said Ritesh Mehta, Senior Director and Head (North and West), Residential Services and Developer Initiatives, JLL India.

“While the market is seeing healthy competition, sales are currently somewhat soft. However, listed developers remain relatively comfortable, having posted strong sales over the past few years. This gives them the cushion to endure a period of slower sales as these new projects hit the market over the next 18 months or sooner,” Mehta said.

“Of course, conditions will differ across micro-markets. In areas with limited supply, new launches are less of a concern, and developers are likely factoring that in. In redevelopment projects, a significant portion of the inventory is absorbed by existing tenants who choose to purchase units. Typically, about 20% is sold to them, leaving the remaining 80% for the open market,” he said.

"Given that these listed players are sitting on strong sales over the last four years, it seems clear they’re consolidating their positions accordingly. Over the next 1-1.5 years, we might see redevelopment announcements soften a bit. The current frenzy may not continue at the same pace. For now, we’ll have to wait and watch how things unfold," Mehta added.

Source: www.hindustantimes.com