Non-Mumbai Developers Flock to the City's Booming Real Estate Market
Mumbai's real estate market is witnessing a surge in interest from developers across the country, driven by high demand and redevelopment opportunities. Despite challenges, firms from Bengaluru, Delhi NCR, and Pune are entering the market through joint ventures and partnerships.
MumbaiReal EstateDevelopersRedevelopmentProperty MarketReal Estate MumbaiJul 26, 2025
Encouraged by elevated prices amid limited land parcels, developers from markets such as Bengaluru, Delhi NCR, and Pune are looking to get a foothold in Mumbai. The housing market in India's financial hub continues to record robust performance in registrations and high-value transactions across key micro-markets, attracting developers from outside the region.
Though the financial appeal of Mumbai's realty market remains strong, challenges persist. High construction costs, complex land ownership structures, and regulatory timelines remain key hurdles.
"Developers from diverse geographies are entering Mumbai buoyed by financial backing from private equity, and institutional funding under joint venture, joint development, or development management business models," said Niranjan Hiranandani, chairman, Naredco. "Redevelopment projects, including society and slum rehabilitation, stand out as untapped opportunities for these players, often implemented in collaboration with local developers for smoother navigation through approvals, compliance mechanisms, and on-ground execution."
Recently, New Delhi-based DLF re-entered the market through a joint venture for a project related to the slum rehabilitation scheme in Mumbai's Andheri suburb. The company said it has received bookings for over 416 apartments worth ₹2,300 crore in the project's first phase, and 20% of the buyers are non-resident Indians (NRIs).
"Our entry into Mumbai represents a significant strategic milestone for DLF," said Aakash Ohri, joint MD, DLF Home Developers, a 100% subsidiary of DLF.
Several non-Mumbai entities, including Prestige Group, Embassy Group, RMZ, Puravankara, Blackstone-backed Kolte Patil Developers, and Ramky Estates & Farms, have entered the Mumbai property market. Many more are currently exploring options. Most of these have reported robust sales performance on the back of ongoing steady housing demand.
"The interest from non-Mumbai players for an entry here has grown sharply in recent quarters. For many of them, the partnership model works out to be the best strategy with local execution support, reduced risk, and the ability to leverage a brand," said Gulam Zia, senior executive director, Knight Frank India.
Mumbai contributed nearly 28% of the total residential sales value across the top eight cities in the first half of 2025, making it a key target for developers.
"Mumbai appears to be a huge opportunity for a developer like us with a good execution track record. We are fully equipped to manage little complexities in the growth journey. We have so far acquired 7 key projects in the city including South Mumbai," said Rajat Rastogi, CEO, west and commercial business, Puravankara.
According to industry experts, Mumbai's redevelopment-centric approach shaped by regulatory frameworks such as Development Control & Promotion Regulations (DCPR) 33(7), 33(9), and slum rehabilitation schemes require experience in handling tenant consent, approvals, and municipal processes. This regulatory complexity continues to deter direct entry for many national developers, making partnerships a preferred route.
Apart from Mumbai and its suburbs, satellite towns including Thane and Navi Mumbai, and peripheral markets are also being explored by developers.
Frequently Asked Questions
Why are developers from other regions entering Mumbai's real estate market?
Developers from other regions are entering Mumbai's real estate market due to high demand, limited land availability, and the potential for redevelopment projects, including slum rehabilitation.
What are the main challenges faced by developers in Mumbai's property market?
The main challenges include high construction costs, complex land ownership structures, and regulatory timelines. These factors make it difficult for developers to enter the market directly, leading many to opt for partnerships with local developers.
What are some notable projects by non-Mumbai developers in the city?
Notable projects include DLF's joint venture for a slum rehabilitation scheme in Andheri, and Puravankara's acquisition of 7 key projects in various parts of Mumbai, including South Mumbai.
How are regulatory frameworks impacting the real estate market in Mumbai?
Regulatory frameworks such as the Development Control & Promotion Regulations (DCPR) 33(7) and 33(9) and slum rehabilitation schemes require developers to handle tenant consent, approvals, and municipal processes. This complexity often leads developers to form partnerships with local entities.
Are there opportunities in satellite towns around Mumbai?
Yes, satellite towns such as Thane and Navi Mumbai, along with other peripheral markets, are also being explored by developers. These areas offer additional opportunities for growth and development.
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