A redevelopment boom is underway in Mumbai, transforming its skyline and real estate market. With thousands of projects underway, the city is addressing space constraints, ageing buildings, and rising housing demand. While redevelopment brings modern housing and economic growth, it also raises concerns about infrastructure, aesthetics, and financial viability. Here is a look at the redevelopment in Mumbai and its impact on infrastructure and real estate prices. How many redevelopment projects are currently underway in Mumbai? Redevelopment in Mumbai is highly focused on specific micro-markets, resulting in varying estimates of the number of projects underway. According to a report by Etonhurst Capital Partners, a real estate fund management platform, the Mumbai Metropolitan Region (MMR) has between 3,000 and 6,000 redevelopment projects at various stages of development. While tracking these numbers accurately is challenging as there is no central database, according to an official from the Maharashtra Housing and Area Development Authority (MHADA), currently, there are more than 2000 redevelopment projects in Mumbai at different stages of development, with maximum projects (around 25 per cent) concentrated only in the western suburbs, predominantly in areas like Borivali, Malad, Bandra and Goregaon. How is the redevelopment boom transforming Mumbai? Redevelopment in Mumbai is transforming old buildings into new structures that provide improved facilities and safety. However, this growth also leads to increased population density without corresponding enhancements in infrastructure such as roads, public transportation, healthcare, and education. While redevelopment improves housing conditions, it also places additional strain on essential services, underscoring the importance of balanced urban planning. The increasing uniformity in the architectural design of new buildings has raised concerns about Mumbai evolving into a more densely packed concrete jungle. "The lack of aesthetic diversity in redevelopment projects is largely driven by regulatory constraints and the government's lucrative regulations. This highlights the need for policy reforms that encourage sustainable urban growth while preserving architectural variety," an urban planning and sustainability consultant said. How long is the redevelopment likely to last, and what is its impact on the existing infrastructure? Market conditions influence the longevity of redevelopment projects. As long as property prices continue to rise or remain stable, redevelopment will remain a viable option for developers. However, as more supply becomes available in the market, new projects' pace will likely slow down. "The redevelopment boom in Mumbai will continue as long as property prices remain stable or on an upward trend. However, the pace may slow down as more under-construction projects are completed and supply increases. Over time, we will also see greater corporatisation of developers, leading to more structured and regulated redevelopment activity," said a real estate consultant. The real estate sector is experiencing a rise in “corporatisation,” where larger, more organised developers are taking over projects from smaller builders. This trend is expected to enhance financial stability and transparency within the industry. While redevelopment efforts are modernising housing, they are also putting a strain on existing infrastructure. Roads, public transport, water supply, and sewage systems face increased pressure due to the growing population density. In many areas undergoing rapid redevelopment, improvements in supporting infrastructure have not kept pace, resulting in congestion and service overload. Are redevelopment projects in Mumbai facing financial challenges? While the market currently remains stable, financial challenges are emerging in some areas. Rising construction costs, regulatory hurdles, and delays in approvals are increasing the financial burden on developers. Many redevelopment projects depend heavily on pre-sales and external funding, making them vulnerable to market slowdowns. “Some projects face funding gaps when developers overpay for land or struggle with cash flow issues. If property prices stabilise or dip, developers who have invested at high valuations may find it difficult to generate expected returns. This could lead to stalled projects or delays in possession for residents,” added the real estate consultant. To address these financial risks, developers must plan projects based on realistic market assessments rather than speculative pricing. Structured funding models, joint ventures with institutional investors, and government-backed redevelopment schemes can provide financial stability. "There are no major financial challenges yet, as prices remain firm. Some micro-markets may see slower sales, but unless a builder has taken on a project at an exceptionally high cost, widespread issues are unlikely,” said Bamasish Paul, co-founder, managing partner & and CEO of Etonhurst Capital Partners. How has the rental market been impacted in the wake of redevelopment? The surge in redevelopment has pushed rental prices higher in Mumbai. As older buildings have been demolished, displaced residents seek temporary accommodations, leading to a supply-demand mismatch. “In the last 18 months, rental prices have risen by 25-30 per cent, far above the usual annual increase of 5-7 per cent. South Mumbai, Central Mumbai, Bandra, Chembur, Andheri, and Borivali have seen the most significant rent hikes,” said Jayesh Rathod, co-founder and director of Guardian Real Estate Advisory. Rathod also highlighted that many tenants opt for long-term rental agreements of three to five years to lock in rates and avoid further price surges. Even suburban areas like Thane, Mira Road, and Navi Mumbai are experiencing increased demand as renters look for affordable alternatives. This trend is reshaping Mumbai’s rental market, making long-term planning essential for both tenants and landlords.
