Mumbai’s Real Estate Renaissance: Redevelopment Takes Center Stage

One of the key themes that reshaped Mumbai’s real estate market in 2025 was redevelopment. Long shaped by vertical ambition and acute space constraints, the city is now being rebuilt from within as developers double down on redevelopment.

In Mumbai, where over 70% of land is already built up and population density exceeds 30,600 persons per sq km, redevelopment has become a necessity rather than a strategy. Over the past five years, more than 910 housing societies have initiated redevelopment, unlocking over 326.8 acres of potential buildable area. “This isn’t merely a trend in construction; it is a reset of the city’s planning logic,” Knight Frank chairman and MD Shishir Baijal writes in the Mumbai Redevelopment Report 2025.

Mumbai’s land scarcity is further compounded by the risks posed by ageing buildings. A 2017 BMC audit found that 1.6 lakh buildings across the city were over 30 years old and required structural assessment. In this context, redevelopment has become foundational to Mumbai’s next urban chapter.

This is where players such as Sri Lotus Developers and Realty come in. The Mumbai-based listed real estate player claims to have built over 4.5 million sq ft across upcoming, ongoing, and completed projects spanning ultra-luxury, luxury, and commercial properties.

Anand Pandit, Chairman and Managing Director of Sri Lotus Developers and Realty, in an exclusive conversation, told Fortune India that rising aspirations, post-pandemic lifestyle recalibration, and Mumbai’s chronic land scarcity are reshaping how homes are conceived, priced, and sold, particularly in the city’s ultra-luxury redevelopment market, where the developer has built a niche presence. He also discusses how 2025 unfolded for real estate, the key drivers behind its growth, and Mumbai’s market potential.

According to Pandit, 2025 was a reasonably good year for the real estate sector, not only on the regulatory side but also on the business side. The year saw positive demand, a good economy, and relief on regulations such as GST. People’s aspirations for new and better living spaces have also played a significant role in driving the market.

Pandit attributes the rise in demand primarily to the shift in consumer aspirations. Earlier, the luxury segment was very limited, but with socio-economic changes, especially in Mumbai, people have moved up the pyramid. Today, people want more spacious, fully loaded houses in good locations, which has changed the real estate scenario.

However, the affordable housing segment has seen a decline in sales. Pandit explains that while the concept of affordable housing is appealing, people prefer to spend more on their homes to get all the amenities and luxury they desire. The definition of affordable housing is also very localized, making it challenging to cater to a broad market.

As families increasingly spend more time together at home, buyers are becoming clearer about the kind of spaces they need. In a market like Mumbai, where space is limited but purchasing power is strong, developers are rethinking design and positioning to attract affluent buyers from across the country. Pandit notes that real estate in Mumbai is a captive market, with developers focusing on local buyers who are end-users rather than investors.

Real estate has emerged as a serious wealth asset, with the luxury segment performing particularly well. Pandit believes that Indians consider real estate as the first and most solid investment. Real estate prices have always given good results, whether for actual use, a second home, or investment apartments.

Mumbai has also seen a lot of traction in redevelopment projects. The key changes shaping this market include the aging infrastructure and the introduction of the 2034 Development Plan by the government, which provided more FSI to land. This has created an economic thrust for people to go for redevelopment, resulting in better, more livable apartments.

For Sri Lotus Developers, the opportunity in Mumbai’s redevelopment market is significant. Pandit emphasizes that they are primarily a redevelopment player, with 95% of their business focused on redevelopment. Their approach involves convincing societies to go for redevelopment, offering full transparency, and treating old tenants as first buyers. They aim to complete projects quickly, delivering fully-loaded apartments in about two and a half to three and a half years.

Sri Lotus Developers’ redevelopment approach stands out in terms of planning, design, and execution discipline. They have a track record of delivering products before time and with a high level of luxury. Clients have seen their progress and consistency in meeting delivery schedules, feeling connected to the company almost like they are part of it.

Looking ahead to 2026, Pandit predicts a challenging yet positive year for the real estate sector and Sri Lotus. The market is becoming more competitive, but he sees this as a positive for the company, welcoming competition as it helps people understand the value of quality redevelopment projects.