Mumbai redevelopment to unlock 44,000+ new homes worth Rs 1,305 bn

September 10, 2025 – Knight Frank India, in the research analysis released today, revealed that by 2030 the current society redevelopment projects in Mumbai (MCGM) region would add a total of 44,277 new homes at the value of INR 1,305 Bn. These society redevelopment projects would not only unlock the residential market potential of the city but would also alter the skyline of Mumbai. According to the report, a total of 910 housing societies have signed development agreements (DA) since 2020, unlocking nearly 326.8 acre (1.32 mn sq m) of potential land area, based on FSI utilisation norms and average unit sizes across the regions. The report notes that an estimated 1,60,000 societies were over the age of 30 and eligible for redevelopment. 

Mumbai’s density has risen relentlessly over four decades, making redevelopment the only viable option for urban renewal.

Geographic spread of estimated future units

Year-wise redevelopment activity

Potential future supply of 44,277 residential units, and estimated market value:

Note: This is purely a supply-side estimate and does not factor in launch velocity, financing, or phasing constraints

Western Suburbs, which include high density population locations of Bandra to Borivali can expect to see the addition of the 32,354 new homes forming 73% of the total addition to stock from society redevelopment while South Mumbai would add 416 new housing units. 

The state government is expected to generate estimated revenues of Rs 6,500 crore on account of the sale of the free sales from the society redevelopment in the next 5 years. Additionally, the free sales will generate Goods and Services Tax (GST) of estimated Rs 6,525 crore in the same period. 

Shishir Baijal, chairman & managing director, Knight Frank India, says, “Society redevelopment in Mumbai is both inevitable and essential, given the city’s limited avenues of greenfield growth and the constant rise in demand. Redevelopment has significantly reshaped the dynamics of several micro-markets and remains a critical driver of Mumbai’s urban renewal. The free sale component from society redevelopment is expected to generate approximately Rs 7,830 crore in stamp duty and another Rs 6,525 crore as GST. However, the segment today appears overheated and is fast reaching a point of inflection. Rising prices have fuelled commitments that stretch well beyond sustainable limits, while society members’ expectations have grown disproportionately. At this juncture, it is imperative for both societies and developers to leave adequate headroom in their arrangements and to structure finances prudently. Only with such discipline can projects remain resilient against emerging challenges and ensure that redevelopment continues to serve the city’s long-term needs.”

Western suburbs spearhead growth

The report underlines the dominance of the suburban market. Between 2020 and H1 2025, the Western Suburbs alone accounted for 633 out of 910 society deals, recording 70% of all agreements signed since 2020. Central Suburbs add another 234 societies, pushing the suburban contribution to almost 96%

Graph: Geographic Spread: Suburban Corridors Lead Mumbai’s Renewal

Borivali, Andheri, and Bandra micro-markets emerge as the top three redevelopment hotspots, together contributing over 139 acres of activity. By contrast, Central and South Mumbai recorded just 43 redevelopment agreements, underscoring the challenges of fragmented ownership, legacy tenancies, and higher entry costs.

Small Plots Dominate Activity

Redevelopment remains concentrated in compact societies. Over 80% of registered agreements since 2020 were for plots below 0.49 acre, highlighting the operational challenges of land aggregation in dense city precincts. Since 2020, 754 societies with plot area upto 0.49 acres have signed deals for society redevelopment.

Table: Average Deal Size

Chart: Average annual deal size by area 

Source: IGR, Knight Frank Research; Note: Data till 30th May 2025.

Despite smaller average plot sizes, the scale of transformation remains substantial, reflecting the city’s fragmented but deeply active redevelopment ecosystem. Over the years, the deal size has also increased. This shift signals the emergence of larger society clusters, better aggregation efforts, and more efficient land utilisation, thus, hallmarking a maturing redevelopment ecosystem.

Gulam Zia, senior executive director– Research, advisory, infrastructure and valuation, Knight Frank India, “The economics of society redevelopment must be viewed through the lens of sustainability. With overheated market conditions and sharply rising prices, we are at a stage where excessive demands and aggressive offers threaten long-term viability. Our assessment suggests that in markets below Rs 40,000 per sqft, developers should not share more than 30–35% of the total area with the society. This may increase to 35–40% where prices range between Rs 40,000 and Rs 60,000 per sqft, and up to 50% in locations priced over Rs 75,000 per sqft. Beyond these thresholds, cashflows lose flexibility and projects become vulnerable. Both societies and developers must therefore plan with adequate buffers so that if the cycle tilts downward, there remains enough room for redressal and completion.”

Long Timelines, Structural Hurdles

The report highlights that redevelopment is inherently a long-cycle endeavour, with projects typically spanning 8–11 years from initiation to final handover. Societies that began their journey in 2020 are only now entering construction or early delivery phases.

Table: Legal Timeline and Risk Points

This extended horizon exposes projects to multiple market cycles, interest rate environments and policy shifts. While redevelopment has gained viability under DCPR 2034 and other supportive frameworks, challenges remain around consensus building, title clarity, and civic permissions.

The report stresses that societies with clear titles, robust documentation, and unified member consent tend to attract stronger developers and achieve faster closures. By contrast, weak documentation or overextended negotiations can stall projects for years, eroding trust and market opportunity.

As Mumbai shifts from horizontal expansion to vertical renewal, redevelopment will define the city’s next housing cycle. With 910 societies already in motion and a pipeline of over 44,000 units on the horizon, the stakes are high. Success will depend on aligning policy support, financial structuring, and stakeholder discipline to transform redevelopment from a cyclical opportunity into a sustainable citywide renewal strategy.