+
Mumbai’s Redevelopment Push
Real Estate

Mumbai’s Redevelopment Push

Nearly 70 per cent of India’s GDP is generated in cities, yet India’s urban core is ageing faster than it is being renewed. Mumbai, with virtually no greenfield land left, is now dependent almost entirely on redevelopment to sustain housing supply. Urban population growth – from 54.5 cror...

Nearly 70 per cent of India’s GDP is generated in cities, yet India’s urban core is ageing faster than it is being renewed. Mumbai, with virtually no greenfield land left, is now dependent almost entirely on redevelopment to sustain housing supply. Urban population growth – from 54.5 crore today to an estimated 60 crore within five years – has further intensified pressure on existing neighbourhoods.As highlighted at the Mumbai Redevelopment Summit, unchecked urban sprawl is no longer viable. According to ISRO estimates (2022), India consumes nearly 1.5 million hectare of farmland annually owing to outward expansion, even as inner-city areas continue to decay. Redevelopment, therefore, has shifted from a planning preference to a structural necessity.The scale mismatchData shared by Knight Frank India reveals a stark execution gap. While the Mumbai Metropolitan Region (MMR) has 40,000-50,000 housing societies, nearly 25,000 of them are over 25-30 years old and technically eligible for redevelopment. Yet, between 2019 and November 2025, only about 1,000 development agreements (DAs) have been registered.Even more telling is the nature of these projects. Nearly 90 per cent of DAs are on plots smaller than 1 acre, largely undertaken by smaller developers. Such projects are far more vulnerable to approval delays, financing stress and prolonged rental obligations – factors that have contributed to an estimated 25 per cent of registered redevelopment projects being stalled or delayed.Policy abundance, predictability deficitMumbai does not lack redevelopment frameworks. From multiple DCR 33 provisions – including 33(5), 33(7), 33(9), 33(12B) and 33(20B) – to cluster redevelopment, slum rehabilitation and self-redevelopment, the regulatory toolkit is extensive. However, summit panellists repeatedly pointed to complexity and discretion as key impediments.Each additional incentive layer increases interpretation risk, elongates approval timelines and raises the cost of capital. In redevelopment, time risk has overtaken construction risk as the primary viability threat. Delays in IODs, CCs and NOCs directly erode IRRs, while rental payouts and interest continue to accrue.Financing exists – but cash flows don’t alignContrary to perception, funding availability is not the core constraint. Banks, NBFCs, cooperative lenders and alternative capital providers are active in the sector. The challenge lies in non-linear cash flows, particularly in the early years before societies vacate and sales commence.As discussed at the summit, lenders are increasingly relying on milestone-based disbursements, escrow controls and independent monitoring to manage risk. However, these safeguards cannot compensate for weak feasibility assumptions or prolonged approval cycles, both of which remain endemic.Trust, expectations and the litigation trapConsumer representatives and legal experts flagged a growing trust deficit between societies and developers. Unrealistic expectations around additional carpet area, rentals and timelines – often shaped by informal advice or social media narratives – frequently undermine project viability. When expectations collide with economic reality, disputes escalate into litigation. With thousands of redevelopment-related cases pending in courts, capital gets locked, timelines stretch indefinitely and confidence across the ecosystem erodes.Self-redevelopment: promise with preconditionsThe Maharashtra Housing Policy 2025, along with proposals for state-backed redevelopment funds of Rs 2,000-3,000 crore and a dedicated self-redevelopment authority, has renewed interest in society-led projects. Yet, speakers cautioned that self-redevelopment is not a panacea.Successful cases are typically small, cohesive societies with strong governance, professional project management and bank-led financial controls. Without these, self-redevelopment risks replicating the same execution failures seen in developer-led projects.Execution realitiesIn Mumbai’s island city, cessed buildings under DCR 33(7) and 33(9) – many over 70-100 years old – present an urgent safety challenge. Repair-based approaches are no longer viable, yet redevelopment approvals alone can take two to three years before demolition begins.Speakers underscored the critical role of project management consultants (PMCs) as system integrators and the growing relevance of BIM and digital dashboards to control cost, timelines and transparency – provided planning authorities also embrace digital scrutiny.What comes nextThe Mumbai Redevelopment Summit made one reality unmistakably clear: the city’s housing future will be decided less by policy intent and more by execution discipline. Across panel discussions – from financing and DCR complexity to self-redevelopment and stalled projects –experts repeatedly flagged the same fault lines: time overruns, trust deficits, fragmented approvals and fragile viability. As redevelopment becomes Mumbai’s primary growth engine, the unresolved question is no longer whether it will happen, but how it can be delivered without repeating past failures. The February issue will take this conversation forward with deeper data, case studies and on-ground insights.

Next Story
Infrastructure Urban

Eicher Delivers First 13.5 m Electric Intercity Sleeper Bus

Eicher Trucks & Buses, a business unit of VE Commercial Vehicles Ltd., has recently delivered its first 13.5 m electric intercity sleeper bus, marking a key milestone in India’s long-distance electric mobility segment. The first bus is being operated by LeafyBus, with plans to deploy 35 buses by March 2026 across high-demand intercity corridors in North India.The initial deployment will cover routes such as Delhi–Dehradun and Delhi–Lucknow, supporting LeafyBus’ expansion across environmentally sensitive and high-density travel corridors.Commenting on the partnership, Suresh Chettia..

Next Story
Infrastructure Urban

HCSS Showcases Unified Construction Platform at CONEXPO 2026

HCSS will recently present the next evolution of its connected construction management platform at CONEXPO-CON/AGG 2026, bringing together construction workflows, data and teams on a single platform across the entire project lifecycle. The event will be held from 3–7 March 2026 in Las Vegas, Nevada. HCSS will host two booths at the show, demonstrating how its integrated software ecosystem enables seamless collaboration between the office, field and shop, from bid stage through to project closeout. Steve McGough, President and CEO, HCSS, said, “For 40 years, we’ve done everything within..

Next Story
Building Material

Berger Paints Q3 Profit Declines Despite Volume Growth

Berger Paints India has reported a mixed performance for the quarter ended 31 December 2025, with healthy volume growth and margin improvement offset by softer demand conditions and cost pressures. On a consolidated basis, revenue from operations for the quarter stood at Rs 29,840 million, compared to Rs 29,751 million in the corresponding quarter last year, reflecting a marginal increase of 0.3 per cent. EBITDA (excluding other income) was Rs 4,710 million, slightly lower than Rs 4,717 million a year earlier. Net profit declined by 8.3 per cent to Rs 2,713 million from Rs 2,960 million. Sta..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Open In App