Redevelopment share of Mumbai housing sales rises to 15%: JLL-Naredco

More than 1,000 redevelopment projects have been launched since 2020, while slum redevelopment now spans over 2,100 acres and self-redevelopment proposals exceed 1,600

Redevelopment’s share of housing sales in Mumbai rose to 15 per cent between 2025 and the first half of 2026 (H1 2026) from around 6 per cent during 2016-2021, outpacing new launches for the first time and marking a significant shift in the city’s housing market.

 

The findings, from a JLL-Naredco report, also show that more than 1,000 redevelopment projects have been launched in Mumbai since 2020, accounting for 13 per cent of the city’s overall residential supply in a market facing acute scarcity of developable land.

 

“Redevelopment has transitioned from a commercial opportunity into an urban survival imperative. The market has graduated from fragmented, single-plot reconstructions to a systemic transformation, with 850 projects launched since 2020 comprising 15% of market share, 2,156 acres in the slum pipeline representing four times all activity over the previous 30 years, and sales now outpacing launches for the first time,” said Karan Singh Sodi, senior managing director, Mumbai MMR & Gujarat and Alternatives, India, JLL.

  

“With virtually no vacant land left and 13,500 cessed buildings requiring urgent replacement, the question is not whether redevelopment will dominate Mumbai’s supply, but how quickly we can safely execute this essential transformation,” he added.

 

Kamlesh Thakur, president of Naredco Maharashtra, said the findings show that redevelopment has become the primary engine of Mumbai’s housing supply, with sales now outpacing launches and securing a 15 per cent market share.

 

Mumbai has approximately 13,500 cessed buildings requiring urgent replacement, with the Western Suburbs accounting for 22.4 per cent of the ageing stock and South Mumbai 14.2 per cent, the report said.

 

Capital values in key redevelopment corridors have also risen. Worli commands ₹1-1.15 lakh per square foot, reflecting 25-28 per cent growth over three years, while Bandra-Khar has values of ₹90,000-95,000 per square foot, with 25-30 per cent growth.

 

The Kandivali-Borivali belt has recorded 20-25 per cent appreciation, with values at ₹32,000-37,000 per square foot.

 

Borivali, Malad, Andheri, Vikhroli and Goregaon account for around 36 per cent of projects launched since 2020. The Western Suburbs accounted for 35-45 per cent of both launches and sales during 2025-H1 2026, the report said.

 

Slum redevelopment has expanded sharply, with 1,202 active projects covering 321,858 hutments across 2,156 acres.

 

This is nearly four times the total acreage completed in the 30 years since the formation of the Slum Rehabilitation Authority (SRA) in 1995.

 

Major projects include the 101-acre Juhu Lane-Gilbert Hill cluster, the Dharavi redevelopment and the 420-acre Goregaon scheme at Motilal Nagar.

 

A November 2025 policy reform removed individual consent requirements for large slum clusters exceeding 50 acres.

 

Under Development Control and Promotion Regulation (DCPR) 2034, the consent threshold has been reduced to 51 per cent, while up to 4.0 floor space index (FSI) is available for cluster and slum projects, the report noted.

 

Self-redevelopment has also reached institutional scale, with more than 1,600 active proposals, according to the report.

 

Infrastructure projects including Metro Lines 4, 6 and 11, the Coastal Road and the Borivali-Thane Twin Tunnel are expected to further support redevelopment and influence land values, the report added.