Mumbai's Housing Redevelopment to Boost Supply with 44,000 New Homes Worth Rs 1.3 Lakh Crore
A report by Knight Frank India highlights the significant impact of housing society redevelopment in Mumbai, expected to add 44,277 new homes by 2030, valued at Rs 1.3 lakh crore. This transformation is driven by policy incentives, strategic developer approaches, and aligned capital markets.
MumbaiReal EstateRedevelopmentHousing MarketKnight Frank IndiaReal Estate MumbaiSep 10, 2025
On Wednesday, real estate consultant Knight Frank India released a detailed report, highlighting that the current society redevelopment projects in the Mumbai (MCGM) region will add a total of 44,277 new homes, worth Rs 1,30,500 crore. The report noted that since 2020, a total of 910 housing societies have signed development agreements (DA), unlocking nearly 326.8 acres (1.32 million square metres) of potential land area, based on FSI utilization norms and average unit sizes across the regions.
Knight Frank also reported that an estimated 1.6 lakh housing societies in Mumbai are over the age of 30 and eligible for redevelopment. Shishir Baijal, Chairman & Managing Director of Knight Frank India, emphasized the importance of society redevelopment in Mumbai, stating, 'Society redevelopment in Mumbai is both inevitable and essential, given the city's limited avenues of greenfield growth and the constant rise in demand.'
Redevelopment has significantly reshaped the dynamics of several micro-markets and remains a critical driver of Mumbai's urban renewal. As per the report, the Western Suburbs, including high-density population locations such as Bandra to Borivali, could see an addition of 32,354 new homes, forming 73 per cent of the total addition to the stock from society redevelopment. South Mumbai is expected to add 416 new homes from the redevelopment of societies.
Gulam Zia, Senior Executive Director of Research, Advisory, Infrastructure, and Valuation at Knight Frank India, provided insights into the financial aspects of redevelopment. 'Our assessment suggests that in markets below Rs 40,000 per sq ft, developers should not share more than 30-35 per cent of the total area with the society. This may increase to 35-40 per cent where prices range between Rs 40,000 and Rs 60,000 per sq ft, and up to 50 per cent in locations priced over Rs 75,000 per sq ft,' Zia explained. 'Beyond these thresholds, cashflows lose flexibility and projects become vulnerable. Both societies and developers must therefore plan with adequate buffers so that if the cycle tilts downward, there remains enough room for redressal and completion.'
The report also highlights the financial benefits for the state government, which is expected to generate estimated revenues of Rs 6,500 crore from the sale of free sales from society redevelopment over the next five years. Additionally, the free sales will generate goods and services tax (GST) of an estimated Rs 6,525 crore in the same period.
This comprehensive redevelopment initiative not only addresses the growing demand for housing in Mumbai but also contributes significantly to the city's urban renewal and economic growth.
Frequently Asked Questions
What is the total number of new homes expected to be added through redevelopment in Mumbai by 2030?
According to Knight Frank India, the redevelopment projects in Mumbai are expected to add a total of 44,277 new homes by 2030.
What is the estimated value of these new homes?
The total value of the new homes added through redevelopment in Mumbai is estimated to be Rs 1.3 lakh crore.
How many housing societies have signed development agreements since 2020?
Since 2020, a total of 910 housing societies have signed development agreements (DA) for redevelopment in Mumbai.
What is the potential land area unlocked by these redevelopment projects?
The redevelopment projects have unlocked nearly 326.8 acres (1.32 million square metres) of potential land area.
What are the expected financial benefits for the state government from these redevelopment projects?
The state government is expected to generate estimated revenues of Rs 6,500 crore from the sale of free sales and an additional Rs 6,525 crore in GST over the next five years.
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