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Mumbai is witnessing one of its largest urban transformations, with redevelopment emerging as a central force behind the city's housing supply. Old cessed buildings and ageing societies are being replaced by modern high-rises that offer safety, sustainability, and lifestyle upgrades. Policy incentives, developer interest, and strong demand are driving projects across South Mumbai, Central areas, and the suburbs, despite regulatory hurdles, rising costs, and civic pressures. Experts underline that transparency, discipline, and timely execution are key to building trust and unlocking value.
Mumbai is undergoing one of the most extensive urban redevelopments in its history, with old societies and cessed buildings across the island city and suburbs being replaced by modern towers offering safety, comfort, and upgraded living standards. Redevelopment currently contributes nearly 30 to 40% of the city's new housing supply, with over 31,000 society projects having been approved by the close of the last financial year, reflecting both urgency and opportunity. Advertisement
Safety remains a primary driver, with the Brihanmumbai Municipal Corporation (BMC) categorising hundreds of buildings as dangerous each year before the monsoon. Earlier this year, the Maharashtra Housing and Area Development Authority (MHADA) declared 96 cessed structures in South Mumbai as unsafe, asking residents to vacate. Policy measures under the Development Control and Promotion Regulations (DCPR) 2034, such as Section 33(20)(B) allowing higher Floor Space Index (FSI), have further made redevelopment financially viable.
Vivek Mohanani, Chief Executive Officer and Managing Director of Ekta World, said that redevelopment went beyond constructing towers, as it offered sustainable living by providing citizens with improved infrastructure, balanced ecosystems, and enhanced work-life integration.
Market activity has been equally strong. Between January and July this year, Mumbai recorded 88,639 property transactions, marking the city's best performance in over a decade. July alone saw over 12,000 registrations with stamp duty collections amounting to INR 1,100 crore. Developers have launched projects worth nearly INR 18,000 crore, with cluster redevelopments in Dharavi, Motilal Nagar, and Kamathipura making headway after years of delays. Luxury redevelopment is emerging as a notable trend, with ageing buildings, chawls, and small societies in South Mumbai, Santacruz, and Juhu increasingly targeted. Central Mumbai areas such as Worli, Dadar, Lower Parel, and Sion are seeing significant redevelopment momentum, while Chembur and Ghatkopar in the eastern belt are witnessing large-scale society-led projects.
Anuj Goradia, Director of Dosti Realty, observed that with the metro and new road corridors, buyers viewed the suburbs as extensions of prime city centres, making redevelopment well-aligned with market demand. Supporting this view, Aditya N Shah, Director of Mayfair Housing, noted that redevelopment was about trust, timely delivery, and creating homes that matched the aspirations of modern Mumbai.
However, the process is not without its challenges. Disputes within societies regarding compensation, delays in approvals from BMC, MHADA, and the Slum Rehabilitation Authority (SRA), as well as rising costs, complicate negotiations. Relocation hurdles, financing requirements, and delivery delays add further risks. Civic strain from increased traffic, pressure on drainage, and infrastructure overload are also concerns.
Industry experts emphasise the importance of execution discipline. Sanjay Daga, Chief Executive Officer and Founder of Anex Advisory, said that the biggest challenge in Mumbai's redevelopment was not intent but execution, with projects often stalling between society expectations and developer delivery. Hardik Pandit, Director of APICES, added that transparency and accountability were vital, ensuring societies and developers moved forward with confidence.
The benefits remain substantial. Redeveloped projects bring earthquake-resistant, fire-compliant towers, improved layouts, green spaces, and modern amenities. Neighbourhoods such as Byculla, Sewri, and Kamathipura are being revitalised, raising property values. Sustainability features such as solar energy, rainwater harvesting, and green building certifications are being incorporated. Market values of redeveloped homes have increased by 40 to 50%, benefitting both residents and investors.
Chintan Sheth, Chairman and Managing Director of Sheth Realty, remarked that redevelopment was not just about land parcels but about financial discipline, legal clarity, and unlocking complex legacy projects. Ruchit Mehta, Partner at Mehta Realty, said that with limited open plots and growing demand, redevelopment offered a way to decongest hotspots, create sustainable projects, and rejuvenate communities, especially with infrastructure upgrades like the metro and Coastal Road improving connectivity.
The success of Mumbai's redevelopment now depends on the delivery of mega projects. If executed with quality and timeliness, these projects could establish benchmarks for cluster redevelopment while enhancing confidence among thousands of smaller societies.
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