If you are familiar with Mumbai, you might have noticed crumbling structures that look straight out of the 70s or 80s. Many of these buildings are more than 60 to 70 years old with faded and cracked walls and leaking pipes. You will find creaky lifts and trees coming out from balconies.
During the rainy season some of these buildings collapse almost every year resulting in a heavy toll of human lives.
That is the reason, the government has decided to redevelop these crumbling buildings and give them a facelift.
You will see gleaming new towers with modern amenities and larger apartments with fresh open spaces, instead of decaying structures.
By 2030, Mumbai could see 44,277 new homes worth a staggering ₹1.3 lakh crore added to its skyline. And it’s not just about new homes; it’s about reshaping the city itself.
Why Is Redevelopment Needed So Urgently?
Mumbai is a landlocked city, and we can’t find new land for its expansion. So, the best way to improve the housing conditions of its 2 crore residents is by building what already exists.
According to Knight Frank India’s research:
- 910 housing societies have already signed redevelopment agreements since 2020
- It frees up nearly 327 acres of land i.e. about 1.32 million sq mt.
- Nearly 1.6 lakh societies in the city are older than 30 years and now need redevelopment
Who Benefits the Most?
Residents: Families living in older societies and crammed spaces suddenly find themselves with bigger, better and safer homes and the best part is that they don’t have to pay a single rupee. Imagine moving from a 500 sq ft to a 750 sq ft flat, with parking and modern amenities that too in the same neighborhood you have lived in for decades.
Developers: Builders get access to prime land parcels that would otherwise be impossible to buy in Mumbai given its skyrocketing cost. Furthermore, it is likely to generate around 20% ROI and that is the reason why many prominent builders from across India are flocking to this place.
The City: The redevelopment isn’t just about reconstruction; it will also improve the city’s revenue stream. Knight Frank estimates that ₹7,830 crore in stamp duty and ₹6,525 crore in GST collections will go to the government’s pocket over the next five years.
Not All That Glitters Is Gold
Like any big opportunity the redevelopment comes with its share of challenges.
High Expectations: Residents are demanding too much such as bigger flats, higher corpus payouts and extra perks. Developers, in turn, sometimes overcommit just to win projects but are not able to deliver them on time.
Market Pressures: In areas where property prices are below ₹40,000 per sq ft, developers shouldn’t share more than 30% to 35% of the total area with societies. If it exceeds, the project risks financial collapse.
Time Factor: The redevelopment is not a quick fix solution. From the first society meeting to handing over the keys, the project typically might take 8 to 11 years. It involves a lot of uncertainty, because the period is spread over multiple real estate cycles involving frequent interest rate changes. And a sudden policy shift can also jeopardize the entire project.
The Areas That Will See the Biggest Changes
Western Suburbs: The area between from Bandra to Borivali is the epicenter of redevelopment. About 73% of all new homes with 32,354 units will be constructed here.
South Mumbai: Redevelopment will have the minimal impact in this region as only 416 new homes are expected to be constructed here.
Experts’ Opinion
Shishir Baijal, CMD at Knight Frank India calls redevelopment inevitable and essential for a land strapped city like Mumbai, but he also warns that the segment looks overheated and risks tipping over if not managed with discipline.
Gulam Zia, senior ED at Knight Frank adds that both societies and developers must view redevelopment through the lens of sustainability and not just short-term gain.
Why This Matters to You
Even if you are not a builder or a society member, redevelopment impacts you in many ways and some of those ways are as follows:
Home Buyers: New supply of apartments in western suburbs could stabilize prices and bring modern housing options to the market.
Investors: The estimated ROI is around 20% of the cost and that is the reason, it is quite important for investors.
City Residents: Redevelopment projects are literally rewriting Mumbai’s skyline.
If executed and implemented correctly then by 2030 the Mumbai will look different from Marine Drive or from the window seat of a local train. The high rises will be taller, shinier, and denser, but hopefully better planned.
Final Thought
Redevelopment is not just a buzzword; it’s Mumbai’s survival strategy. The question isn’t if it will happen, but how well it will be executed.
The project needs faster approval processes by policymakers and investors & builders should ensure that the citizens get homes that match the promises. The answers to these questions are crucial because the ₹1.3 lakh crore redevelopment project can either become a landmark success story or just sink in the history of many failed projects.
