Housing society redevelopment projects in Mumbai (Municipal Corporation of Greater Mumbai region only) would add a total of 44,277 new homes at a value of Rs. 1,30,500 crore by 2030 to the supply side, Knight Frank India said in a research analysis released on Wednesday.
These society redevelopment projects would not only unlock the residential market potential of the city but would also alter the skyline of Mumbai, it added.
Besides benefiting the house owners staying in the societies with more space and modern housing, such redevelopment is yielding about 20% return on investment (ROI) for developers making builders from all over the country entering the society redevelopment segment in the city.
According to the report, a total of 910 housing societies have signed development agreements (DA) since 2020 with builders, 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.
According to the report 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.
Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “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. 7830 crore in stamp duty and another Rs. 6,525 crore as GST in five years,” he said.
“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,” he cautioned.
“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,” he added.
Gulam Zia, Senior Executive Director– Research, Advisory, Infrastructure and Valuation, Knight Frank India said, “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 sq ft, 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 sq ft, and up to 50% in locations priced over Rs 75,000 per sq ft,” he said.
“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,” he added.
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.
“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,” Knight Frank India said in the report.
“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,” it added.
Published – September 10, 2025 08:01 pm IST
