Redevelopment is emerging as a major driver of Mumbai’s residential market, with projects in this segment accounting for 15% of total housing sales during the first half of 2025-26, according to a JLL and NAREDCO report. The share was only around 6% between 2016 and 2021.
For the first time, sales from redevelopment projects have surpassed those from newly launched developments, highlighting the growing importance of urban renewal in a city facing limited availability of developable land.
The report states that more than 1,000 redevelopment projects have been launched in Mumbai since 2020, together representing around 13% of the city’s residential supply. With limited land and a large stock of ageing structures, redevelopment is increasingly being viewed as an essential component of Mumbai’s future housing growth.
Western Suburbs Lead Redevelopment Activity
Mumbai has around 13,500 cessed buildings requiring urgent reconstruction, with 22.4% of the ageing stock located in the western suburbs and 14.2% in South Mumbai.
Borivali, Malad, Andheri, Vikhroli and Goregaon account for nearly 36% of redevelopment projects launched since 2020. During the first half of 2025-26, the western suburbs contributed approximately 35-45% of redevelopment launches and housing sales.
Redevelopment has also coincided with higher property values in several locations. Worli currently commands around Rs 1 lakh-Rs 1.15 lakh per sq ft, reflecting a reported 25-28% increase over three years. Bandra-Khar values are around ₹90,000-₹95,000 per sq ft, while the Kandivali-Borivali belt has recorded a reported 20-25% increase.
Slum Redevelopment Gains Momentum
Slum rehabilitation is another significant part of Mumbai’s redevelopment pipeline. The report identifies 1,202 active projects covering 321,858 hutments across 2,156 acres, almost four times the acreage completed since the establishment of the Slum Rehabilitation Authority in 1995.
Major projects include the 101-acre Juhu Lane-Gilbert Hill cluster, Dharavi redevelopment and the 420-acre Motilal Nagar project in Goregaon.
Self-Redevelopment Also Expands
Self-redevelopment by housing societies is gaining momentum, with more than 1,600 active proposals currently in progress.
Upcoming infrastructure, including Metro Lines 4, 6 and 11, the Coastal Road and the Borivali-Thane Twin Tunnel, is expected to further open redevelopment opportunities and influence property values in surrounding areas.
With ageing buildings, limited vacant land and expanding infrastructure, redevelopment is increasingly becoming one of the principal ways for Mumbai to add new housing while retaining established neighbourhoods.
Source: Lokmat
