The company will construct 500 one-bedroom apartments in the first phase of the project named 'Regent Hill' at Powai.
The company's chairman Niranjan Hiranandani said the project is registered with the real estate regulatory authority RERA.
"This is more of an end user friendly project although it also comes across as a perfect investment option too," he added.
The total project cost for the first phase is estimated at around Rs 500 crore, a company spokesperson said.
The new project is close to Hiranandani group's township project Hiranandani Gardens that comprises of world-class hospital, an international school, a five-star hotel and retail areas.
Hiranandani group is selling apartments in this project at Rs 1.25 crore onwards.
The housing sector is witnessing very limited launches during this festival season because of poor demand and unsold inventories lying with real estate developers.
According to a latest report by PropTiger.com, housing sales declined 25 per cent in nine major cities to 65,799 units during the July-September quarter, while new launches fell 45 per cent as consumers sentiments and demand remained subdued.
Recently, Hiranandani group announced an investment of about Rs 1,000 crore to develop 115-acre industrial and logistics park in Chennai.