Noida's Urban Transformation: Redevelopment Drive Inspired by Mumbai Model
Noida Authority has approved a new redevelopment policy, inspired by the Mumbai model, to transform central urban spaces and address longstanding housing gridlocks. This strategic move aims to unlock underutilised land and improve housing quality in prime urban zones.
Noida AuthorityRedevelopmentReal EstateUrban PlanningMumbai ModelReal Estate MumbaiJun 21, 2025
Developers will be incentivised to participate by being allowed to sell additional units on newly unlocked Floor Area Ratio (FAR), provided they build upgraded homes for the original allottees. “We have identified 4-5 buildings, which are in a dilapidated state. When these were constructed, the permissible FAR was 1.5; now it is 3.5,” a Noida Authority official said. “RFPs will be floated individually for each building.”
### How the Policy Works
Developers selected through public tenders will be responsible for:
- Demolishing old structures and constructing new apartment complexes
- Rehousing original EWS allottees in larger units at no additional cost
- Providing temporary accommodation to displaced residents during construction
- Monetising surplus FAR through saleable units, thus recovering investment
This approach is expected to revitalise urban land banks, improve housing quality, and introduce vertical, modern infrastructure in place of decaying stock.
### Stakeholder Reactions and Industry Impact
The move has been largely welcomed by the real estate community. “While the policy is much-needed, every redevelopment project will carry unique challenges. It must remain commercially viable, especially as buyer preferences have evolved,” said Nikhil Hawelia, MD of Hawelia Group and secretary of CREDAI Western UP.
“This is a major step towards fulfilling the dream of owning a home in prime Noida,” said Yash Miglani, MD of Migsun Group. “Increased FAR and co-developer involvement can finally address the concerns of thousands of stuck homebuyers.”
### Relief for Stalled Projects and Homebuyers
Parallel to the redevelopment policy, the Noida Authority has also cleared the entry of co-developers in five stalled projects, potentially benefitting over 5,000 buyers waiting for possession of their homes. Data from CREDAI reveals a massive backlog across the NCR region:
- 190,000 housing units are stuck in Noida, Greater Noida, and Ghaziabad
- The projects represent an estimated value of Rs 1 lakh crore
- Greater Noida alone has at least 36 projects under insolvency
- Real estate developers owe Rs 40,000 crore to local authorities, including interest and penalties
“This step marks a progressive move toward urban revitalisation. With increased FAR and improved facilities, the initiative can rejuvenate the city’s core and promote homeownership,” said Salil Kumar, Director at CRC Group.
### Looking Ahead
Urban planners note that replicating Mumbai’s redevelopment model in Noida comes with its own set of administrative and logistical hurdles—especially around tenant consent, project phasing, and temporary resettlement. However, the framework sets the stage for a broader transformation of ageing housing stock across Indian urban centres. If successfully implemented, this could serve as a template for cities like Ghaziabad, Faridabad, and Lucknow, facing similar issues of dilapidated low-income housing and stalled developments.
Frequently Asked Questions
What is the new redevelopment policy in Noida?
The new redevelopment policy in Noida, inspired by the Mumbai model, involves demolishing ageing EWS flats and replacing them with modern, larger units. Developers are incentivised by being allowed to sell additional units on newly unlocked Floor Area Ratio (FAR).
How will this policy benefit the original allottees?
Original EWS allottees will be rehoused in larger units at no additional cost. Developers will also provide temporary accommodation to displaced residents during construction.
What are the key responsibilities of developers under this policy?
Developers are responsible for demolishing old structures, constructing new apartment complexes, rehousing original allottees, providing temporary accommodation, and monetising surplus FAR through saleable units.
How will this policy impact the real estate market in Noida?
The policy is expected to revitalise urban land banks, improve housing quality, and introduce modern infrastructure. It also addresses the backlog of stalled projects and benefits thousands of homebuyers.
What are the challenges in implementing this policy?
The challenges include administrative and logistical hurdles such as tenant consent, project phasing, and temporary resettlement. However, the framework sets a stage for a broader transformation of ageing housing stock across Indian urban centres.
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