Society redevelopments drive Mumbai’s housing pipeline as land scarcity grows

On similar lines, Ajay Sharma of Colliers India said, “Mumbai has about 330,000 units under construction under development as of 2025 under Maharashtra Housing and Area Development Authority (MHADA) and Slum Rehabilitation Authority (SRA). This supply is expected to come up in next five years across Mumbai. New supply in last one year is 37,800 units. Of the unsold stock nearly 300,000 are under different stages of development and remaining are nearing completion. Nearly 75 percent of this supply is from redevelopment and remaining from greenfield.”

Developers’ pipeline

For developers, redevelopment has become a parallel growth engine. “Redevelopment has now emerged as a key pillar, playing a role as significant as our traditional greenfield launches,” said Rajat Rastogi, Chief Executive Officer – West and Commercial Assets, Puravankara. The company has secured rights for eight societies in Chembur, spanning 1.2 million sq ft with a GDV of Rs 2,100 crore. Its broader Mumbai redevelopment portfolio covers 4.25 million sq ft valued at about Rs 10,500 crore.

Rastogi noted that more than a fifth of Puravankara’s sales in Q1 FY26 came from homes priced above Rs 2 crore. “This demonstrates strong market demand for high-end redevelopment projects,” he said, adding that the Rs 10,500 crore pipeline could evolve into a “distinct business vertical over time.”

Other large players are following suit. DLF has completed the first phase of a major slum rehabilitation project and is advancing Phase 2, while Prestige Estates has entered Mumbai through the Jijamata Nagar redevelopment, a mixed-use precinct with luxury retail, offices, residences and hospitality.

According to Rathi, listed developers enjoy financing and brand advantages that appeal to societies. But Sharma noted that many of them now prefer taking over projects mid-way instead of starting afresh, “as a lot of time and effort is required in getting pre-construction approvals.” Partnerships with local developers, he said, have helped reduce risks.

Rathi added that redevelopment has “shifted the basis of land valuation from outright plot purchases to an FSI-driven model” that accounts for rehabilitation, premiums and TDRs, while Sharma pointed out that core Mumbai land is largely exhausted, leaving redevelopment as the “only way forward.”

Expanding to other metros

While Mumbai dominates, redevelopment is gradually spreading to other cities. Rathi noted opportunities in older Delhi Development Authority (DDA) colonies and housing societies in Gurugram and Noida.

"Pune has already seen activity in older precincts and Pimpri-Chinchwad Municipal Corporation (PCMC) areas where redevelopment is supported by ageing stock and infrastructure upgrades. Bengaluru has been slower to adopt this model due to younger housing stock," he said.

Further, Sharma added that developers see higher margins in central areas of Pune, Delhi, Chennai and Bengaluru. “Authorities are also pushing higher FSI norms for such projects to ensure better revenue realisation for both local bodies and projects,” he said.