December 29, 2025: Redevelopment emerged as one of the defining forces shaping Mumbai’s real estate market in 2025, driven by land scarcity, ageing buildings and evolving lifestyle aspirations. With more than 70% of the city already built up and population density exceeding 30,600 people per sq km, rebuilding existing neighbourhoods has become unavoidable rather than optional.
Over the last five years, more than 910 housing societies have initiated redevelopment, unlocking nearly 327 acres of potential buildable land. As Knight Frank chairman Shishir Baijal observed in the Mumbai Redevelopment Report 2025, “This isn’t merely a trend in construction; it is a reset of the city’s planning logic.” The urgency is reinforced by a 2017 BMC audit that identified nearly 1.6 lakh buildings over 30 years old requiring structural assessment.
Against this backdrop, developers such as Sri Lotus Developers and Realty have carved a niche in ultra-luxury redevelopment. Anand Pandit, Chairman and Managing Director, believes redevelopment is now fundamental to Mumbai’s next phase. Reflecting on 2025, he said, “I think it was a reasonably very good year… Almost everything was positive- good demand, good economy… and also the aspiration of people.”
Pandit attributes demand growth to changing consumer expectations rather than just investor activity. “People want to move into slightly more spacious houses, fully loaded houses, in good locations,” he explained, noting that luxury today reflects comfort, space and amenities rather than labels.
On affordable housing, Pandit was candid, comparing it to the Tata Nano experiment: “That is what is happening with affordable housing… I don’t want my family to have the tag of ‘affordable housing.’” He stressed that housing priorities have shifted post-pandemic, with homes now seen as spaces for wellbeing and longevity.
Looking ahead, Pandit is unequivocal about redevelopment’s scale. “I would say the whole of Mumbai is going to go for redevelopment,” he said, citing estimates of nearly 90,000 eligible buildings. While he expects competition to intensify in 2026, Pandit remains optimistic, concluding that the long-term trajectory of Mumbai’s real estate market remains firmly upward.
Source: Fortune India
