Mumbai's Housing Pipeline Thrives on Society Redevelopments Amid Land Scarcity
As vacant land for greenfield projects in Mumbai dwindles, society redevelopments are becoming the primary source for new housing launches, with major developers capitalizing on prime locations.
MumbaiRedevelopmentHousingLand ScarcityReal EstateReal Estate MumbaiSep 10, 2025
A Knight Frank India report estimates that by 2030, society redevelopment projects in the Mumbai Municipal Corporation of Greater Mumbai (MCGM) region will deliver 44,277 new homes worth Rs 1,305 billion. Since 2020, around 910 housing societies have signed development agreements, unlocking nearly 326.8 acres of land. The report also highlights that about 160,000 societies are over 30 years old and eligible for redevelopment.
The Western Suburbs from Bandra to Borivali are expected to contribute 73% of this stock, with 32,354 homes. Central Suburbs will add 10,422 units, Central Mumbai 1,085, and South Mumbai 416. The state government is projected to earn around Rs 6,500 crore from free-sale components and another Rs 6,525 crore in GST revenues over the next five years.
Vivek Rathi, National Director – Research, Knight Frank India said redevelopment is set to drive supply, as “vacant land availability in the Island City and much of the suburban district is very limited, making redevelopment an important channel for new projects.” Greenfield opportunities, he added, are now restricted to select pockets with larger land parcels.
On similar lines, Ajay Sharma of Colliers India said, “Mumbai has about 330,000 units under construction under development as of 2025 under Maharashtra Housing and Area Development Authority (MHADA) and Slum Rehabilitation Authority (SRA). This supply is expected to come up in the next five years across Mumbai. New supply in the last one year is 37,800 units. Of the unsold stock nearly 300,000 are under different stages of development and the remaining are nearing completion. Nearly 75 percent of this supply is from redevelopment and the remaining from greenfield.”
For developers, redevelopment has become a parallel growth engine. “Redevelopment has now emerged as a key pillar, playing a role as significant as our traditional greenfield launches,” said Rajat Rastogi, Chief Executive Officer – West and Commercial Assets, Puravankara. The company has secured rights for eight societies in Chembur, spanning 1.2 million sq ft with a GDV of Rs 2,100 crore. Its broader Mumbai redevelopment portfolio covers 4.25 million sq ft valued at about Rs 10,500 crore.
Rastogi noted that more than a fifth of Puravankara’s sales in Q1 FY26 came from homes priced above Rs 2 crore. “This demonstrates strong market demand for high-end redevelopment projects,” he said, adding that the Rs 10,500 crore pipeline could evolve into a “distinct business vertical over time.”
Other large players are following suit. DLF has completed the first phase of a major slum rehabilitation project and is advancing Phase 2, while Prestige Estates has entered Mumbai through the Jijamata Nagar redevelopment, a mixed-use precinct with luxury retail, offices, residences, and hospitality.
According to Rathi, listed developers enjoy financing and brand advantages that appeal to societies. But Sharma noted that many of them now prefer taking over projects mid-way instead of starting afresh, “as a lot of time and effort is required in getting pre-construction approvals.” Partnerships with local developers, he said, have helped reduce risks.
Rathi added that redevelopment has “shifted the basis of land valuation from outright plot purchases to an FSI-driven model” that accounts for rehabilitation, premiums, and TDRs, while Sharma pointed out that core Mumbai land is largely exhausted, leaving redevelopment as the “only way forward.”
While Mumbai dominates, redevelopment is gradually spreading to other cities. Rathi noted opportunities in older Delhi Development Authority (DDA) colonies and housing societies in Gurugram and Noida.
“Pune has already seen activity in older precincts and Pimpri-Chinchwad Municipal Corporation (PCMC) areas where redevelopment is supported by ageing stock and infrastructure upgrades. Bengaluru has been slower to adopt this model due to younger housing stock,” he said.
Further, Sharma added that developers see higher margins in central areas of Pune, Delhi, Chennai, and Bengaluru. “Authorities are also pushing higher FSI norms for such projects to ensure better revenue realisation for both local bodies and projects,” he said.
Frequently Asked Questions
What is driving the increase in society redevelopments in Mumbai?
The main driver is the scarcity of vacant land for greenfield projects, making society redevelopments the primary source for new housing launches in Mumbai.
How many new homes are expected from society redevelopment projects by 2030?
By 2030, society redevelopment projects in the Mumbai Municipal Corporation of Greater Mumbai (MCGM) region are estimated to deliver 44,277 new homes worth Rs 1,305 billion.
Which areas in Mumbai are expected to contribute the most to the new housing stock?
The Western Suburbs from Bandra to Borivali are expected to contribute 73% of the new housing stock, with 32,354 homes. Central Suburbs will add 10,422 units, Central Mumbai 1,085, and South Mumbai 416.
What are the advantages of redevelopment for developers like Puravankara and DLF?
Redevelopment offers advantages such as financing and brand advantages, higher margins, and the ability to enter prime locations. It also aligns with the market demand for high-end projects.
Is redevelopment spreading to other cities besides Mumbai?
Yes, redevelopment is gradually spreading to other cities like Delhi, Pune, and Bengaluru, with opportunities in older colonies and precincts supported by aging stock and infrastructure upgrades.
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