Western suburbs lead Mumbai's Rs 1.31 trn redevelopment boom: Knight Frank

Knight Frank India says society redevelopment projects across Mumbai will unlock 44,277 new homes by 2030, with western suburbs accounting for nearly three-quarters of supply

Parts of Mumbai, in the midst of a redevelopment with over 900 residential societies up for an overhaul, will add 44,277 new homes as free sale components worth ₹1.31 trillion by 2030, a report by real estate consultant Knight Frank India says.

 

Since 2020, 910 housing societies have signed development agreements (DA), unlocking nearly 326.8 acres (1.32 million square metre) of potential land based on floor-space index (FSI) norms and average unit sizes.

 

The free-sale component of these projects is estimated to generate ₹7,830 crore in stamp duty revenue for the state and ₹6,525 crore in GST collections.

 

The Western Suburbs -- stretching from Bandra to Borivali -- will see the largest supply, with 32,354 new homes or 73 per cent of the total. South Mumbai will add just 416 units, while 234 societies in the Central Suburbs push the suburban share to almost 96 per cent.

 

Borivali, Andheri, and Bandra have emerged as the top three hotspots, contributing over 139 acres of redevelopment activity. Central and South Mumbai together recorded only 43 agreements, constrained by fragmented ownership, legacy tenancies, and higher entry costs. 

 

The report highlighted that over 80 per cent of agreements since 2020 were for plots below 0.49 acres, underscoring the challenges of land aggregation in a dense city. Of the total, 754 societies with such small plot areas have signed redevelopment deals.

 

Redevelopment projects typically span 8-11 years from initiation to final handover. Societies that began their process in 2020 are only now entering construction or early delivery phases. The long timelines expose projects to multiple market cycles, interest rate shifts, and policy changes.

 

Shishir Baijal, chairperson and managing director, Knight Frank India, cautioned. “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.”

 

While viability has improved under Development Control and Promotion Regulations (DCPR) 2034 and other supportive frameworks, consensus building, title clarity, and civic permissions remain hurdles.

 

Gulam Zia, senior executive director, research, advisory, infrastructure and valuation, Knight Frank India, said that in markets priced below ₹40,000 per square feet, developers should not allocate more than 30-35 per cent of the total area to societies.

 

The share may rise to 35-40 per cent where prices are ₹40,000- ₹60,000 per square feet, and up to 50 per cent where prices exceed ₹75,000 per square feet.

 

“Beyond these thresholds, cash flows 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,” Zia said.