July 15, 2025: Mumbai’s real estate sector is witnessing a surge in redevelopment activity, even as housing sales begin to taper off. In the past six months alone, five publicly listed developers have announced projects worth a combined Rs 18,000 cr, signalling a strategic shift in focus.
Experts say this move is aimed at consolidating gains made during the past three years of strong sales. By building a robust redevelopment pipeline now, developers hope to secure their sales outlook over the next three to five years. However, analysts caution that this momentum may soften in the year ahead.
Among the key players, Rustomjee Group has announced three projects with a gross development value (GDV) exceeding Rs 7,700 crore. Arkade Developers is working on eight projects totalling Rs 5,000 crore in GDV, while Puravankara, Mahindra Lifespace, and K Raheja Homes have also launched high-value redevelopments across Mumbai, including in areas like Chembur and Malabar Hill.
Prestige Group has ventured into South Mumbai with luxury launches in Marine Lines and Worli, while Sunteck Realty has been tapped to redevelop a 2.5-acre site in Andheri, expected to generate 2.75 lakh sq ft of saleable space.
Redevelopment is seen as the most viable route in a land-constrained city like Mumbai, where the supply-demand equation strongly favours high-value infill projects. Developers say it allows them to deliver modern, amenity-rich housing while optimising land use.
Despite a 34% year-on-year drop in Mumbai’s Q2 2025 home sales and a 61% fall in new launches, listed developers are leaning on past performance to navigate this phase.
According to JLL India, much of the upcoming inventory will be absorbed over 12–18 months, with developers confident of steady demand—particularly in suburbs where larger plots and organised societies offer greater redevelopment potential.
Source: Hindustan Times
