Mumbai’s redevelopment market may appear highly lucrative, but it also comes with significant challenges and risks, according to Boman Irani, Chairman and Managing Director of Rustomjee Group, also known as Keystone Realtors.
Speaking during the company’s Q4FY26 earnings call on May 12, Irani said redevelopment opportunities worth nearly Rs 1.30 lakh crore are expected to emerge in Mumbai by 2030, attracting growing interest from developers across the sector.
“There are plenty of risks when it comes to redevelopment, and people do not know what it is all about, but everybody is getting on this gravy train only because it looks very, very attractive,” he said.
Irani noted that while redevelopment projects offer substantial long-term potential, they involve operational, legal, financial, and execution-related complexities that many market participants may underestimate.
“People don’t know what redevelopment is all about, but everybody is getting on this gravy train only because it looks very, very attractive. Redevelopment opportunities worth ₹130,000 crore by 2030. With a lot of redevelopments that we are taking nowadays, we are moving towards the larger ones because they allow us to be able to engage our ability and creativity to a much greater extent,” Irani said during the call.
He added that redevelopment-related risks remain relatively limited for Rustomjee Group due to its long experience in the segment.
“We have been doing redevelopment since 2000, and with a 25-year track record of placing more than 2,500 families in their new homes, I think we have established a proper Standard Operating Procedure (SOP) for the entire redevelopment process,” Irani said.
Irani also stated that the company’s market share in the Mumbai Metropolitan Region has increased from 1% to 2%, with a long-term target of reaching 5%.
Discussing housing demand amid global uncertainties, including the ongoing Middle East crisis, Irani said premium and luxury housing demand has remained stable, although homebuyers are taking longer to finalise purchase decisions. He also noted that construction costs for certain materials have risen by 8% to 13%, contributing to an overall project cost increase of around 5%.
Source: Hindustan Times
