Mumbai’s real estate market is buzzing with increased activity, particularly in the redevelopment of old housing societies. Developers from other cities, including Bengaluru, are now stepping into the city’s saturated land market, grabbing opportunities to transform outdated buildings into modern apartments. The surge in redevelopment is fueled by the financial strength of major real estate firms and the large number of aging buildings in need of a facelift.

Big Players Enter the Scene
Bengaluru-based Puravankara Limited has made headlines with its recent announcement of securing redevelopment rights for the Miami Apartments in Breach Candy, South Mumbai. Alongside this, the company plans to redevelop four more societies in Andheri. Puravankara highlighted that prices in these areas range between ₹1.25 lakh to ₹1.40 lakh per square foot, reflecting the high demand in these prime locations.

House of Hiranandani, another real estate giant, has also stepped up by signing agreements with five housing societies in Mumbai’s Chembur area. With a planned investment of ₹3,200 crore and redevelopment agreements totaling 17 lakh square feet, the company aims to revamp 459 units in Chembur East and West, including projects like Maitri Park and Shrinagar Society. The redevelopment is expected to be completed within the next 4-5 years, as per company officials.

Surge in Redevelopment Post-COVID-19
As per a report by Hindustan Times, redevelopment activity in Mumbai saw a significant boost post the COVID-19 pandemic, with the Maharashtra government reducing premiums on real estate projects to stimulate housing sales. Although the initial impact was citywide, there has been a noticeable uptick in redevelopment projects, especially in South Mumbai, where some of India’s most expensive real estate is located.

Experts suggest that many of the redevelopment projects currently being launched have been in the pipeline for years. “The redevelopment projects we see today likely began two or three years ago. From 2016 to 2021, the real estate market in Mumbai was stagnant. However, the premium waiver introduced after COVID-19 ensured that old buildings could still be redeveloped,” as per experts.

Connectivity Boosts Demand in South Mumbai
In addition to government initiatives, infrastructure improvements such as the partial opening of the Coastal Road and the announcement of the Cuffe Parade to Aarey Colony Mumbai Metro-3 corridor have further accelerated the demand for redevelopment. Experts predict that areas like Nariman Point, Churchgate, and Mumbai Central will benefit directly from these projects, while suburban areas like Bandra and Versova are expected to gain indirectly from improved connectivity to the city center.

The Redevelopment Model: What It Means for Homeowners
Redevelopment has become a crucial avenue for real estate developers in land-starved cities like Mumbai. Under this model, developers enter into agreements with homeowners, promising them additional space in exchange for utilizing unused Floor Space Index (FSI) to construct new units for sale. However, experts advise homeowners to carefully evaluate the developer’s financial stability, prior projects, and legal agreements before committing to a redevelopment plan.

CREDAI-MCHI to Host Mumbai’s First Redevelopment Expo
In a first-of-its-kind initiative, CREDAI-MCHI, an apex body of developers in Maharashtra, will be hosting an exhibition on September 28 to facilitate redevelopment projects. This event will provide housing societies an opportunity to connect with leading developers and explore the redevelopment options for their communities.

“This exhibition will create a unique platform where societies can engage directly with developers, understand their capabilities, and initiate redevelopment discussions,” said a senior CREDAI-MCHI official.

With Mumbai’s redevelopment market expected to grow significantly over the next decade, both homeowners and developers are gearing up for a mutually beneficial transformation of the city’s aging housing infrastructure.