NEW DELHI: The Mumbai region is set for significant redevelopment, with over 44,000 new homes expected by 2030, valued at ₹1.3 lakh crore, according to a report by Knight Frank.
On Wednesday, the real estate consultant Knight Frank India released insights indicating that Mumbai’s redevelopment landscape is evolving remarkably.
“A blend of policy incentives, asset-light developer strategies, and favorable capital markets have transformed redevelopment into a strategically valuable endeavor,” the consultant noted.
Knight Frank estimates that ongoing society redevelopment projects in the Mumbai (MCGM) area will yield a total of 44,277 new homes worth ₹1,30,500 crore. Since 2020, 910 housing societies have entered into development agreements, unlocking nearly 326.8 acres (1.32 million square meters) of land based on FSI regulations and average unit sizes.
The report also highlighted that approximately 1.6 lakh housing societies, most over 30 years old, qualify for redevelopment.
“Redevelopment in Mumbai is not just necessary, it is essential, due to limited opportunities for new developments and continually increasing demand,” stated Shishir Baijal, Chairman & Managing Director of Knight Frank India.
He emphasized that redevelopment is a fundamental factor in shaping many micro-markets and driving urban renewal in Mumbai.
The report indicates that the Western Suburbs, particularly high-density areas from Bandra to Borivali, could see the addition of 32,354 new homes, which constitutes 73% of the total new housing stock from society redevelopments.
Furthermore, South Mumbai is projected to add 416 new homes through society redevelopment.
Gulam Zia, Senior Executive Director of Research, Advisory, Infrastructure, and Valuation at Knight Frank India, advised that in markets under ₹40,000 per square foot, developers should limit their contributions to 30-35% of the total area shared with the society. This figure may increase to 35-40% for properties priced between ₹40,000 and ₹60,000 per square foot, and potentially up to 50% for properties above ₹75,000 per square foot.
“Going beyond these limits could reduce cash flow flexibility and make projects more vulnerable. Both developers and societies need to incorporate sufficient buffers to ensure project completion even in downturns,” Zia emphasized.
According to the report, the state government is expected to generate approximately ₹6,500 crore from the sale of free sales related to society redevelopment over the next five years. Additionally, these transactions are projected to yield an estimated ₹6,525 crore in goods and services tax (GST) during the same timeframe.
