September 11, 2025: With land scarcity at its peak, redevelopment of old housing societies is fast reshaping Mumbai’s residential landscape and attracting major developers from across the country. According to a Knight Frank report, between 2020 and May 2025, 910 societies in the Brihanmumbai Municipal Corporation (BMC) area signed redevelopment agreements, unlocking nearly 327 acres of potential land. Notably, the figures exclude slum rehabilitation projects.
The western suburbs have dominated this activity, accounting for 70 per cent of all deals signed in the period. Knight Frank estimates that ongoing redevelopment could deliver over 44,000 new homes, valued at Rs 1.3 lakh crore, by 2030. With an estimated 1.6 lakh societies over 30 years old and eligible for redevelopment, the scale of opportunity is substantial.
Luxury and large-scale projects are already taking shape. Prestige Group is redeveloping a high-end society in Bandra, Puravankara recently acquired rights in Malabar Hill, and Oberoi Realty is leading a redevelopment in Worli.
While smaller plots under 0.49 acres have historically dominated, larger cluster projects are emerging, enabled by the Development Control and Promotion Regulations 2034. These provide higher buildability and flexible design norms, making redevelopment increasingly attractive to developers.
Industry experts, however, caution against overheating. “Excessive demands and aggressive offers threaten long-term viability,” warned Gulam Zia, Senior Executive Director at Knight Frank. He advised developers to maintain discipline, noting that over-commitment could make projects vulnerable if housing demand slows.
Despite such concerns, Mumbai continues to see robust housing demand. Between January and August 2025, the city recorded nearly one lakh property registrations, up three per cent year-on-year, signalling continued investor and end-user appetite.
As greenfield opportunities fade, society redevelopment remains central to Mumbai’s urban renewal, offering both challenges and opportunities in equal measure.
Source: The Week
