July 22, 2025: Mumbai’s residential property market is witnessing a strategic pivot towards redevelopment, with over Rs 18,000 crore worth of projects announced in the past six months alone. This shift comes as housing sales and new launches in the city show signs of a slowdown.
At least five listed developers—including Rustomjee Group, Arkade Developers, Mahindra Lifespace, Sunteck Realty, and Puravankara—have declared major redevelopment schemes, largely targeting land-scarce yet high-demand areas such as the western suburbs and South Mumbai.
Rustomjee has unveiled three projects with a gross development value (GDV) exceeding Rs 7,700 crore. Arkade is pursuing eight projects worth Rs 5,000 crore in suburban pockets like Malad, Andheri, and Dahisar. Mahindra Lifespace has announced schemes valued over Rs 3,000 crore, while Puravankara is entering the Chembur redevelopment segment with eight societies totalling Rs 2,100 crore.
In South Mumbai, K Raheja Homes has acquired the iconic Palmera Cooperative Housing Society in Malabar Hill. The 6,000 sq.m site on Narayan Dabholkar Road has redevelopment potential of nearly 3 lakh sq ft.
Meanwhile, Bengaluru-based Prestige Group, a recent entrant in Mumbai, is expanding its luxury portfolio across Marine Lines and Worli. Sunteck Realty has launched a project in Andheri, expecting 2.75 lakh sq ft of saleable space with a GDV of Rs 1,100 crore.
Despite these bold moves, Mumbai’s housing market dipped sharply in Q2 2025. Sales fell 34% year-on-year, and new launches dropped by 61%, according to Propequity.
Industry analysts suggest developers are hedging against future uncertainties by banking land and securing inventory. Redevelopment offers scalability in suburbs and high-margin prospects in South Mumbai—making it a favoured strategy for long-term growth amid constrained land availability.
Source: The Realty Today
