How is redevelopment changing the Mumbai residential landscape?
The redevelopment sector has experienced a boom since 2022, with record-breaking launches and sales. Suburban areas have been particularly active, while core markets like Andheri, Bandra, and Chembur face constraints due to older, smaller buildings. As a result, redevelopment is increasingly contributing to the residential market, and this trend is likely to persist in the future. Mumbai's residential scenario has undergone a significant transformation since 2019, driven by land scarcity, ageing infrastructure, and the need for modern amenities. Redevelopment projects are redefining neighborhoods, catering to the demand for contemporary and sustainable housing, and ushering in a new era of urban living in India's financial hub.
How is “Redevelopment” aiding the land scarcity in Mumbai’s Residential Scenario?
1. Focus on “Transit-Oriented” development: The development process is focused across the metro expansion driving transit-oriented redevelopment, with higher FSI (Floor Space Index) allowances near stations. This promotes high-density, mixed-use developments around transit hubs, fostering sustainable urban growth and improved city-wide connectivity.
Figure 1.
The % growth of launches from covid period (2020 – 2021) to the post covid era (2022 onwards) is massive. Close to 7 time of the new launches and 11 times the sales value between covid era to present reflects how the demand for sustainable construction and living is being upheld.
Mumbai's residential redevelopment sector has shown
remarkable resilience, rebounding from pandemic slowdowns to achieve
record-breaking launches and sales in 2024. This growth is driven by increasing
demand for modern urban living across diverse areas, including:
- South Mumbai: Dadar and Prabhadevi, valued for their central location and
infrastructure
- South Central: Chembur and Matunga, known for planned layouts and proximity
to businesses
- North: Bandra, Khar, and Santacruz, offering upscale living and connectivity
- Eastern Suburbs: Vikhroli and Ghatkopar, with improving infrastructure and
commercial growth
- Western Suburbs: Borivali and Goregaon, blending suburban charm with urban
amenities
These redevelopment hotspots cater to the growing need for modern housing in
established neighborhoods, transforming Mumbai's urban landscape and
revitalizing city centers.
Figure 2.
Figure 3.
2. Rise of Public – Private partnerships: Mumbai has a dense cluster of projects ageing 50 years and above. These projects are on the top priority list of MHADA (Maharashtra Housing and Area Development Authority). Over the past few years, the redevelopment of old buildings and creating sustainable living has been a flagship undertaking of MHADA. Stepping in this journey are the developers seeking land parcels for development to increase their foothold in the financial capital of India. This collaboration maintains balance between social responsibility and urbanization.
3. Adopting advanced construction tech: The collaboration between private and public sector has led to a good exchange of ease of process and advanced technology. The introduction of advanced technologies like prefabricated components and BIM, enhanced efficiency, construction speed, and overall quality of redeveloped structures, modernized the city's urban renewal process.
4. Sustainable development: There is a strong emphasis on sustainability, incorporating green building techniques, energy-efficient systems, and eco-friendly features like rainwater harvesting and solar panels, and setting new urban living standards.
5. Inclination towards Cluster Development: Mumbai's redevelopment has moved towards “cluster development”, focusing on restoring and revamping an entire locality with a holistic approach. This strategy allows better planning and integrated communities, as seen in ambitious projects like Bhendi Bazaar and Dharavi.
6. Dedicated focus on open spaces & recreational amenities: Latest development projects ascertain a trend that Mumbai is emphasizing on community living with state-of-the-art amenities, green zones, and modernized living. These recent developments are majorly seen in upscale suburban areas like Andheri, Juhu, Vile Parle, and Bandra. These projects modernize older societies, improving living spaces for residents.
7. Ease of approval processes: With the active involvement of MHADA and RERA establishment, the approval process has been streamlined through online systems, increasing transparency and efficiency. These changes have enhanced project quality, accelerated timelines, and boosted investor confidence in redevelopment initiatives.
Note: Mumbai includes Mumbai city, Mumbai suburbs, Thane
city and Navi Mumbai
Source: All the data taken from REIS, JLL Research.
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