Mumbai's Redevelopment Boom: 44,000 New Luxury Homes to Hit the Market

Redevelopment of aging housing societies is set to reshape Mumbai’s property market, with over 44,000 new apartments worth nearly Rs 1.3 lakh crore expected to hit the market in the next 3–4 years, according to Knight Frank India.

Gulam Zia, Senior Executive Director at Knight Frank India, told ET Now that while the pipeline looks large, the type of homes being built raises concerns. “Developers are offering 75–100% more space to existing residents along with big corpus payouts. Such promises may not remain feasible if market sentiment turns,” he said, warning of a risk of defaults.

Most new projects will target the premium and luxury housing segment, with little scope for affordable homes. “Even in Borivali, homes are expected to sell at Rs 30,000 per sq. ft or more. At those prices, affordability is out of the question. In Mumbai, almost everything is being branded and sold as a luxury,” Zia noted.

While the redevelopment wave has been most active in the western suburbs of Borivali, Andheri, Bandra, central locations like Ghatkopar and Kurla are also seeing traction. In contrast, South Mumbai accounts for less than 5% of society redevelopment due to older FSI usage, rent-control complexities, and MHADA involvement.

Interestingly, despite concerns of overheating, Mumbai’s housing sales have remained steady. From January to August 2025, sales were 11% higher year-on-year compared to the same period in 2024. “Monthly data does not show a slowdown yet,” Zia said.

The redevelopment boom will also benefit the state exchequer. Stamp duty collections alone are estimated at Rs 7,800 crore, while GST on construction materials and finished units could push government revenues even higher. “Almost 40–45% of an apartment’s cost eventually goes into government coffers,” Zia pointed out.

However, Zia cautioned that society redevelopments still make up less than 10% of Mumbai’s annual home sales, with a far larger share coming from slum rehabilitation projects (SRAs). “That’s where the bigger impact lies, as SRAs will release a much larger number of units into the free market,” he said.

For ordinary homebuyers, this wave of redevelopment means glossier towers and premium-priced apartments—not affordable housing. “In Mumbai today, the problem is that everything is luxury. There’s hardly any room left for affordable homes,” Zia concluded.