MUMBAI: Builders in the city emerged as the leading revenue source for the BMC during 2025-26, contributing a staggering Rs 11,626 crore in premiums and development charges. This figure reflects a significant increase from the BMC’s highest recorded property tax collection of Rs 7,610 crore in the previous financial year, driven primarily by extensive redevelopment projects.
“The development plan department is the principal revenue generator for the municipal corporation,” stated a civic official.
This amount marks the highest collection from developers since the Covid-19 lockdown. In October 2020, the BMC incentivized the real estate sector by offering a 50% discount on premium payments for 15 months. This scheme ultimately helped the corporation gather Rs 14,500 crore by the time it ended in January 2022.
“The BMC’s robust premium collections are strongly tied to the availability and utilization of additional floor space index (FSI) in key micro-markets. In South Mumbai, where height restrictions are minimal and higher FSI can be effectively utilized, developers are enabled to construct taller buildings and unlock greater value,” explained Gulam Zia, international partner and senior ED at Knight Frank India.
He further noted, “As a result, this leads to increased premium payments, particularly since these are tied to elevated Ready Reckoner rates in prime areas. Conversely, markets limited by aviation regulations or height restrictions exhibit lower premium flows due to constrained development potential. Current collections reflect a concentration of high-value activities, and though they may moderate with a potential slowdown, the scale achieved this year remains impressive.”
According to data from BMC’s development plan department, the region between Bandra and Jogeshwari generated the highest revenue from developers (Rs 2,451 crore), followed by south and central Mumbai (Colaba to Byculla – Rs 2,392 crore). The area from Goregaon to Dahisar recorded Rs 1,811 crore. Among municipal wards, K-West ward (Andheri West) contributed the largest share in Greater Mumbai (Rs 301 crore), closely followed by H-West ward (Bandra-Khar-Santacruz – Rs 283 crore).
Data from Liases Foras, a non-broking real estate research firm, indicates that developer sales in Greater Mumbai reached Rs 1.32 lakh crore in 2025, marking an 8% increase from 2024.
“The data suggests that the Mumbai real estate market continues to exhibit strong momentum, bolstered by healthy sales and a rise in development approvals, although completion activity is showing signs of moderation,” remarked Pankaj Kapoor, MD of Liases Foras.
