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Mumbai's housing sector is witnessing significant transformation through society redevelopment, with over 44,000 new homes expected to come up by 2030, valued at around INR 1.3 lakh crore, according to Knight Frank India. Since 2020, 910 housing societies have signed development agreements, unlocking more than 326 acres of potential land. Western suburbs are projected to account for the majority of these additions, while South Mumbai will see modest growth. With nearly 1.6 lakh societies eligible for redevelopment, and state revenues from free-sale units and GST projected at over INR 13,000 crore combined, redevelopment is proving to be a major driver of urban renewal.
Mumbai is undergoing a significant transformation in its residential sector through society redevelopment. Knight Frank India's report shows that redevelopment projects in the Mumbai region are expected to deliver 44,277 new homes, collectively valued at around INR 1.3 lakh crore by 2030. Advertisement
The report states that policy incentives, asset-light strategies adopted by developers, and alignment with capital markets have made redevelopment not only viable but strategically important. Since 2020, a total of 910 housing societies have signed development agreements, unlocking nearly 326.8 acres (1.32 million square metres) of land, based on FSI norms and average unit sizes across regions.
Knight Frank noted that roughly 1.6 lakh housing societies in Mumbai are over 30 years old and eligible for redevelopment. Shishir Baijal, Chairman & Managing Director of Knight Frank India, said that redevelopment is essential due to limited greenfield growth in the city and rising housing demand. He added that redevelopment has already influenced the dynamics of multiple micro-markets and remains a key factor in Mumbai's urban renewal.
The Western suburbs, covering densely populated areas from Bandra to Borivali, are expected to see 32,354 new homes, representing nearly 73% of the total redevelopment-driven additions. South Mumbai is projected to add 416 homes through society redevelopment projects.
Gulam Zia, Senior Executive Director at Knight Frank India, provided guidance on area-sharing between developers and societies. In markets priced below INR 40,000 per sq ft, developers should not share more than 30-35% of the total area with the society. In areas priced between INR 40,000 and INR 60,000 per sq ft, the share may increase to 35-40%, and in locations over INR 75,000 per sq ft, it can go up to 50%. He explained that exceeding these thresholds may affect cashflow flexibility, and both societies and developers should maintain buffers to ensure project completion even if market cycles shift downward.
The report also highlighted that the state government is likely to earn approximately INR 6,500 crore in revenue from the sale of free-sale units over the next five years. Additionally, GST collections from these sales are expected to reach around INR 6,525 crore during the same period, reflecting the broader economic impact of society redevelopment.
Source PTI
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