Real estate developers emerged as the largest contributors to the Brihanmumbai Municipal Corporation’s (BMC) revenues in the financial year 2025–26, depositing Rs 11,626 crore through premiums and development charges. This figure significantly exceeded the civic body’s highest-ever property tax collection of Rs 7,610 crore recorded in the previous year, underscoring the scale of construction activity across the city.
The surge in collections has been largely driven by widespread redevelopment projects and new construction, reflecting sustained momentum in Mumbai’s real estate sector.
“The development plan department is the biggest revenue earner for the municipal corporation,” said a civic official. This marks the highest revenue mobilisation from developers since the Covid-19 period. Notably, a 50% discount on premium payments introduced in October 2020 for 15 months had earlier boosted collections, helping the BMC generate Rs 14,500 crore before the scheme concluded in January 2022.
Explaining the trend, Gulam Zia, international partner and senior ED at Knight Frank India, said, “The BMC’s strong premium collections are closely linked to the availability and utilisation of additional floor space index (FSI) across key micro-markets. South Mumbai, where height restrictions are almost non-existent, and higher FSI can be effectively deployed, allow developers to build taller towers and unlock greater value.”
He added, “This, in turn, results in higher premium payments, especially as these are linked to elevated Ready Reckoner rates in such prime areas. In contrast, markets constrained by aviation norms or height restrictions see relatively lower premium flows due to limited development potential. The current collections reflect this concentration of high-value activity, and while they may moderate with any slowdown, the scale achieved this year remains noteworthy.”
Region-wise, the Bandra–Jogeshwari belt led revenue generation with Rs 2,451 crore, followed by south and central Mumbai (Colaba to Byculla) at Rs 2,392 crore, and the Goregaon–Dahisar stretch at Rs 1,811 crore. Among wards, Andheri West (K-West) and Bandra-Khar-Santacruz (H-West) recorded the highest contributions.
Data from Liases Foras shows developer sales in Greater Mumbai reached Rs 1.32 lakh crore in 2025, reflecting an 8% year-on-year increase.
“Data indicates that the Mumbai real estate market continues to maintain strong momentum, supported by healthy sales and increased development approvals, even as completion activity shows signs of moderation,” said Pankaj Kapoor, MD, Liases Foras.
Source: ET Realty
