Mumbai’s redevelopment sector continues to attract strong interest from developers despite the operational and financial risks involved, with opportunities in the segment expected to touch nearly Rs 1.30 lakh crore by 2030, according to Boman Irani, Chairman and Managing Director of the Keystone Realtors.
Speaking during the company’s Q4FY26 earnings conference call on May 12, Irani said redevelopment projects in Mumbai involve multiple challenges, though developers continue to enter the segment because of its long-term growth potential.
“There are many risks involved in redevelopment and people are not very aware of what it is. Yet, everyone is participating in this ‘benefit stream’ because this sector is very attractive,” he said.
Highlighting the scale of opportunities expected in the coming years, he added that redevelopment projects worth nearly Rs 1.30 lakh crore could emerge in Mumbai by 2030.
“People are not very clear about what redevelopment is. Yet, everyone is joining this ‘profit stream’ because it seems like a very attractive opportunity. There are Rs 130,000 crore redevelopment opportunities available by 2030. We are now moving towards larger projects because we can use our capabilities and creativity on a larger scale in such projects,” Irani said.
According to him, the risks for the Rustomjee Group remain relatively limited due to the company’s long experience in the redevelopment segment.
“We have been doing redevelopment work since 2000. With the experience of relocating more than 2,500 families to their new homes over these 25 years, I feel we have established a proper standard operating procedure for the entire redevelopment process,” he said.
Mr. Irani also stated that the company’s market share in the Mumbai Metropolitan Region (MMR) had increased from 1% to 2%, with a long-term target of reaching 5%.
“The large cluster developments and new types of development projects that we are doing will give us a big boost. The new cities or villages that are being added will strengthen our position, and the diverse business portfolios that we are now evaluating and starting work on will give us stability. The path to reach Rs 10,000 crore has now started, and the pre-sale of Rs 5,000 crore this year will be the first step,” he added.
Source: Loksatta
