Mumbai's Housing Revolution: Redevelopment Projects to Add 44,000 New Homes by 2030
Mumbai's housing market is set for a major transformation with redevelopment projects expected to add over 44,000 new homes by 2030, worth Rs 1.3 lakh crore, according to a report by Knight Frank India.
MumbaiHousing MarketRedevelopmentKnight Frank IndiaUrban RenewalReal Estate NewsSep 10, 2025
Knight Frank has estimated that the current society redevelopment projects in the Mumbai Municipal Corporation of Greater Mumbai (MCGM) region will add a total of 44,277 new homes, valued at Rs 1,30,500 crore. Since 2020, a total of 910 housing societies have signed development agreements (DA), unlocking nearly 326.8 acres (1.32 million square meters) of potential land area, based on Floor Space Index (FSI) utilization norms and average unit sizes across the regions.
The report also notes that an estimated 1.6 lakh housing societies are over 30 years old and eligible for redevelopment. Shishir Baijal, Chairman & Managing Director of Knight Frank India, emphasized that society redevelopment in Mumbai is both inevitable and essential, given the city's limited avenues for 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.
According to the report, the Western Suburbs, including high-density population locations from Bandra to Borivali, could see the addition of 32,354 new homes, forming 73% 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. He stated that in markets below Rs 40,000 per square foot, developers should not share more than 30-35% of the total area with the society. This share may increase to 35-40% where prices range between Rs 40,000 and Rs 60,000 per square foot, and up to 50% in locations priced over Rs 75,000 per square foot. Beyond these thresholds, cash flows lose flexibility, and projects become vulnerable. Both societies and developers must plan with adequate buffers to ensure that there is room for redressal and completion if the cycle tilts downward.
The state government is expected to generate estimated revenues of Rs 6,500 crore from the sale of free sales from society redevelopment in 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 redevelopment initiative is poised to significantly boost Mumbai's housing market, addressing the growing demand for new homes and contributing to the city's economic growth and urban development.
Frequently Asked Questions
What is the estimated value of the new homes to be added by 2030 through redevelopment in Mumbai?
The estimated value of the new homes to be added by 2030 through redevelopment in Mumbai is Rs 1.3 lakh crore.
How many housing societies have signed development agreements (DA) since 2020?
Since 2020, a total of 910 housing societies have signed development agreements (DA) in the Mumbai region.
What percentage of the total new homes will be added in the Western Suburbs of Mumbai?
The Western Suburbs of Mumbai, including high-density areas from Bandra to Borivali, are expected to see the addition of 32,354 new homes, forming 73% of the total new homes from society redevelopment.
What is the expected revenue for the state government from the sale of free sales from society redevelopment?
The state government is expected to generate an estimated revenue of Rs 6,500 crore from the sale of free sales from society redevelopment in the next five years.
What is the role of policy incentives in the redevelopment of housing societies in Mumbai?
Policy incentives play a crucial role in making redevelopment viable and strategically compelling, alongside asset-light developer strategies and capital market alignment.
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