India’s leading corporate groups are increasingly entering the urban redevelopment space, reflecting a broader shift in the real estate sector from acquiring greenfield land to transforming existing urban areas. Companies associated with Reliance Industries, Adani Group, JSW Group, Shapoorji Pallonji Group and Lodha Developers have recently competed for several large-scale redevelopment projects in Mumbai, including ageing housing colonies, slum rehabilitation schemes and cluster redevelopment initiatives.
The trend gained further momentum with Vedanta Group’s recent entry into the real estate sector, expanding its business interests beyond mining, metals and energy.
“The growing foray of large corporates and conglomerates into Indian real estate is a clear indicator that the sector is moving from a fragmented, promoter-led market to a more institutionalised, governance-first industry. It is also happening now for a reason: RERA, GST, a stronger compliance environment, digitisation and sharper homebuyer expectations have accelerated trust and transparency, making scale and discipline a competitive advantage,” said Niranjan Hiranandani, Chairman, NAREDCO.
Experts believe the increasing preference for redevelopment is driven by the scarcity and rising cost of large land parcels in major cities.
“Large-scale redevelopment is becoming the preferred growth avenue for well-capitalised corporate groups because it offers access to prime urban locations where acquiring sizable greenfield land parcels is no longer feasible. While these projects demand significant capital and execution capabilities, they also create long-term development pipelines in established micro-markets with relatively lower market risk,” said Shishir Baijal, CMD, Knight Frank India.
Mumbai has emerged as the focal point of this trend. Recent projects attracting interest include MHADA’s Adarsh Nagar redevelopment in Worli, the Bandra Reclamation cluster project, SVP Nagar in Andheri West, the Juhu Galli slum redevelopment and the Dharavi and Motilal Nagar redevelopment initiatives.
Industry experts say redevelopment offers developers access to established locations with existing infrastructure while reducing land acquisition challenges. Backed by strong financial resources and execution capabilities, large corporate groups are increasingly positioned to undertake complex regeneration projects, making redevelopment one of India’s fastest-growing real estate segments.
Source: The Economic Times
