Oberoi Realty has strengthened its presence in South Mumbai by entering into two development agreements for a cluster redevelopment project at Malabar Hill. The agreements, signed on April 1 and July 29, 2026, cover adjoining land parcels and are expected to pave the way for a premium residential development, with a potential launch during FY27.
The first agreement involves approximately 1,740 sq. m. of land, giving the developer a potential free-sale entitlement of up to 51,000 sq. ft. of RERA carpet area. The second agreement, signed in July and disclosed to stock exchanges, relates to around 2,430 sq. m. (approximately 0.60 acre), with an estimated free-sale entitlement of up to 68,000 sq. ft.
Together, the two parcels provide Oberoi Realty with a significant development opportunity in one of Mumbai’s most expensive residential neighbourhoods. However, the proposed saleable area remains subject to regulatory provisions, approvals under the cluster redevelopment scheme and applicable development regulations.
Industry estimates place the project’s potential gross development value between Rs 1,020 crore and Rs 1,360 crore, assuming property rates of Rs 1.5 lakh to Rs 2 lakh per sq. ft. These figures are indicative market assessments rather than confirmed selling prices.
Cluster redevelopment allows adjoining societies with older buildings and fragmented land holdings to combine their plots for a larger development. This can make reconstruction commercially viable while creating additional residential supply in locations where vacant land is scarce.
Oberoi Realty’s latest move follows another redevelopment agreement at Peddar Road earlier in 2026, involving approximately 1.40 lakh sq. ft. of free-sale area. The company also reported consolidated revenue of Rs 1,361.69 crore and profit after tax of Rs 544.71 crore in Q1 FY27.
The Malabar Hill project will now depend on securing the necessary approvals, completing arrangements with participating societies and addressing potential legal or rehabilitation-related challenges. While analysts anticipate a launch within FY27, the final timeline will depend on the progress of these processes.
Source: Realty Promoo
