Noida Embraces Urban Redevelopment Model Inspired by Mumbai
Noida Authority has approved a new urban redevelopment policy, mirroring Mumbai's transformation blueprint. The policy aims to revitalize older housing pockets, enhance vertical development, and improve living conditions for low-income residents.
Urban RedevelopmentNoidaMumbaiReal EstateLowincome HousingReal Estate MumbaiJun 21, 2025
The policy primarily targets dilapidated housing units originally allotted to the economically weaker section (EWS). These ageing structures, many of which pose safety risks, will now be demolished and replaced with modern, high-rise buildings. For the first phase, the authority has shortlisted four to five such buildings in visibly deteriorated condition. According to officials, when these units were first built, they were permitted a floor area ratio (FAR) of 1.5. Under the new policy, this has been increased to 3.5, unlocking significant vertical potential.
Developers will be invited to participate in the redevelopment through separate request for proposal (RFP) processes for each project. As per the framework, the chosen developer must construct larger and improved homes for the existing residents and provide interim accommodation during the reconstruction phase. In return, the builder will be allowed to monetize the additional constructed area by selling new units on the open market. 'This is an opportunity to repurpose valuable land in central Noida while improving the quality of life for existing occupants,' said a senior Noida Authority official. The policy is also seen as a tool to make redevelopment commercially viable, which has historically been a challenge due to cost pressures and buyers’ shifting preferences.
Real estate developers have responded positively, noting that this model could help reenergize stagnant housing corridors. 'The inclusion of co-developers and increased FAR makes these projects more feasible and attractive to investors. It could also be a breakthrough for stuck projects and long-delayed buyer deliveries,' said an industry representative associated with CREDAI (Western UP).
The Authority has already extended its redevelopment approach by approving co-developers in five stalled real estate projects. This step is expected to benefit over 5,000 homebuyers who have been awaiting possession of their units for years. More broadly, around 190,000 housing units—worth nearly ₹1 lakh crore—are currently stuck across Noida, Greater Noida, and Ghaziabad. The policy shift could be pivotal in reducing this inventory backlog. Greater Noida remains one of the worst-affected zones, with over three dozen projects under insolvency proceedings. Simultaneously, developers owe nearly ₹40,000 crore in dues to various authorities in the region, including penalties, interest, and outstanding principal on land parcels.
Experts argue that this redevelopment model promotes not just economic rejuvenation but also social equity by ensuring vulnerable communities receive dignified housing. With upgraded infrastructure, more efficient land use, and sustainable design principles, Noida’s redevelopment policy is aligned with modern urban planning goals—emphasizing compact cities, improved access, and environmental resilience.
Sectors like 27, 93, and 93A, located in the heart of Noida, are expected to be among the first beneficiaries of the new policy. If implemented efficiently and transparently, this initiative could redefine the city’s housing landscape and set a precedent for other rapidly growing urban centers in India.
Frequently Asked Questions
What is the main goal of Noida's new urban redevelopment policy?
The main goal is to unlock prime inner-city land, drive vertical residential development, and improve living conditions for low-income residents by demolishing and replacing dilapidated housing units with modern, high-rise buildings.
What is the floor area ratio (FAR) increase under the new policy?
The floor area ratio (FAR) has been increased from 1.5 to 3.5, allowing for more vertical development and greater construction potential.
How will developers benefit from the new policy?
Developers will benefit by being allowed to monetize the additional constructed area by selling new units on the open market, while also providing larger and improved homes for existing residents and interim accommodation during reconstruction.
How many housing units are currently stuck in Noida and surrounding areas?
Approximately 190,000 housing units, worth nearly ₹1 lakh crore, are currently stuck across Noida, Greater Noida, and Ghaziabad.
Which sectors in Noida are expected to be among the first beneficiaries of the new policy?
Sectors like 27, 93, and 93A, located in the heart of Noida, are expected to be among the first beneficiaries of the new urban redevelopment policy.
Related News Articles
Indian Real Estate Sees Surge in Joint Development Agreements
Joint development agreements for 1546 acres of land inked in the last 18 months, with a focus on residential projects in Delhi NCR, Bengaluru, and Mumbai.
MahaRERA's New Guidelines: Enhanced Protection for Homebuyers in Maharashtra
From July 1, developers in Maharashtra will be required to maintain designated bank accounts to ensure transparency and accountability in financial operations of housing projects.
Arnya RealEstates Marks First Close of ₹375 Crore for Maiden Fund
Arnya RealEstates Fund Advisors raises ₹375 crore for its maiden real estate fund, with a focus on providing early-stage growth capital to residential projects.
Maharashtra Elections 2024: Nawab Malik Files Nomination from Mankhurd-Shivaji Nagar
Today marks the final day for candidates to submit their nominations for the Maharashtra state elections. Notable political figure Nawab Malik is set to file his nomination from the Mankhurd-Shivaji Nagar constituency.
Bombay High Court Stays REAT Order on Rs. 38.18 Cr Deposit in Real Estate Dispute
In a significant development, Justice Gauri Godse of the Bombay High Court has stayed an order by the Real Estate Appellate Tribunal (REAT) that directed a developer to deposit Rs. 38.18 crore in a real estate dispute.
India's Office Space Market Surges to 515 Lakh Sq Ft in 2024, Setting New Records
Mumbai leads the growth in new completions by 170%, while the IT-ITeS sector drives leasing activity. With demand soaring, 2025 is poised to be another year of robust growth in India's commercial real estate.