The post-pandemic surge in Mumbai’s real estate sector is being driven by an accelerated rush for the redevelopment of old and dilapidated buildings. Once plagued by outdated infrastructure and poor amenities, these buildings are now seeing a wave of residents agreeing to redevelopment projects that promise modern living standards. The pandemic’s rush for homes has hastened the decision for many residents, making redevelopment a more appealing option.
Amit Sawant, a resident of Navi Mumbai’s Vashi, shared his story of how a 40-year-old building in his locality is now being redeveloped. After years of living in a cramped apartment with limited amenities, Sawant and his family will soon have access to a more spacious 3BHK home. The promise of basic amenities such as a lift was a major factor in their decision to agree to the redevelopment. “The lack of basic amenities, such as lifts, parking, and proper sanitation facilities, is a key concern for those living in older buildings. Redevelopment projects offer solutions by providing modern, well-equipped homes with the amenities residents crave,” said Prashant Sharma, president of the National Real Estate Development Council in Maharashtra. According to Sharma, as of May 2024, approximately 31,000 redevelopment projects have already been approved in the city.
Mumbai’s vast number of aging buildings, many built before the 1970s under outdated development regulations, are prime candidates for redevelopment. These structures often lack necessary safety features and amenities, which have prompted many residents to push for redevelopment. The city’s need for redevelopment is further emphasized by the prevalence of “cess properties,” where funds collected for repairs have done little to address structural issues. This often results in squatting tenants, some of whom have lived in the same property for generations, facing cramped spaces and inadequate facilities. A major concern for residents is the lack of car parking, as many buildings were constructed at a time when car ownership was low. “Now, every family has at least two vehicles, and parking is a significant issue,” said Sawant. The redevelopment boom is not just about improving the quality of life for residents but also revitalizing entire neighborhoods. “Redevelopment provides opportunities to not only improve individual homes but also rejuvenate the surrounding area with new cafes, shops, and upgraded infrastructure,” explained Ranjeet Pawar, director of Sugee Group.
Several areas of Mumbai, including Dadar, Bandra, Santacruz, Chembur, and parts of South Mumbai like Girgaum and Grant Road, have seen the most redevelopment activity. Suburbs such as Andheri, Borivali, and Vashi are also experiencing significant redevelopment as the demand for housing continues to rise. The influx of new infrastructure, particularly metro lines and road projects like the Mumbai Coastal Road, is also accelerating the redevelopment process. Areas near metro corridors, such as Lower Parel, Bandra, and Goregaon, have seen rising property values, making them more attractive for developers. While the redevelopment trend is undeniably contributing to the city’s growth, some worry about gentrification and rising living costs. Dr. Niranjan Hiranandani, co-founder of Hiranandani Group, argues that a reduction in the premium levied on redevelopment projects could make housing more affordable. “Reducing the premium would create more affordable housing, ensuring that redevelopment projects provide a better quality of life without making them prohibitively expensive,” Hiranandani said. As Mumbai’s real estate market continues to evolve, a balanced approach between luxury and affordable housing under redevelopment projects will be crucial. While high-end areas like South Mumbai are shifting towards luxury apartments, the suburbs continue to offer more affordable options. By accommodating different income groups, the city can ensure that redevelopment benefits a wider spectrum of residents.
