Redevelopment's share of housing sales in Mumbai has surged to 15% between 2025 and the first half of 2026 (H1 2026), up dramatically from around 6% during 2016-2021, according to a JLL-Naredco report. This marks the first time redevelopment sales have outpaced new launches, representing a significant shift in Mumbai's housing market dynamics. The transformation has been driven by more than 1,000 redevelopment projects launched in Mumbai since 2020, which now account for 13% of the city's overall residential supply. As reported by JLL, this transition reflects redevelopment evolving from a commercial opportunity into an urban survival imperative. Karan Singh Sodi, Senior Managing Director - Mumbai MMR and Gujarat and Alternatives, India, JLL, emphasized that "Mumbai faces a fundamental constraint that no regulatory framework can resolve, which is an absolute scarcity of developable land. Redevelopment has transitioned from a commercial opportunity into an urban survival imperative."
Mumbai faces an absolute scarcity of developable land, with approximately 13,500 cessed buildings requiring urgent replacement. The Western Suburbs account for 22.4% of the ageing stock, while South Mumbai represents 14.2% of the total requirement. According to JLL, with virtually no vacant land left, the question is not whether redevelopment will dominate Mumbai's supply, but how quickly safe execution can be achieved. The city's slum redevelopment has expanded dramatically, with 1,202 active projects covering 321,858 hutments across 2,156 acres, representing nearly four times the total acreage completed in the 30 years since the Slum Redevelopment Authority (SRA) was formed in 1995. As reported by JLL, this scale of opportunity is huge, with concentrations in premium corridors from Colaba to Borivali.
Borivali, Malad, Andheri, Vikhroli, and Goregaon account for around 36% of projects launched since 2020, while the Western Suburbs accounted for 35-45% of both launches and sales during 2025-H1 2026. Major institutional players have entered with mega-projects including the 101-acre Juhu Lane-Gilbert Hill cluster, Dharavi redevelopment, and the 420-acre Goregaon scheme at Motilal Nagar. Under Development Control and Promotion Regulation (DCPR) 2034, the consent threshold has been reduced to 51%, while up to 4.0 floor space index (FSI) is available for cluster and slum projects. Self-redevelopment has also reached institutional scale with more than 1,600 active proposals.
Capital values in key redevelopment corridors have shown significant appreciation. Worli commands ₹1-1.15 lakh per square foot, reflecting 25-28% growth over three years, while Bandra-Khar has values of ₹90,000-95,000 per square foot, with 25-30% growth. The Kandivali-Borivali belt has recorded 20-25% appreciation, with values at ₹32,000-37,000 per square foot. 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.
A November 2025 policy reform removed individual consent requirements for large slum clusters exceeding 50 acres, streamlining the redevelopment process. The report notes that slum redevelopment has expanded sharply with the 1,202 active projects covering 321,858 hutments across 2,156 acres, representing nearly four times the total acreage completed in the 30 years since the formation of the Slum Redevelopment Authority (SRA) in 1995. Kamlesh Thakur, President of NAREDCO Maharashtra, emphasized that "Redevelopment has evolved from a policy initiative into the primary engine of the city's housing supply, evidenced by sales now outpacing launches and securing a 15% market share." The market has graduated from fragmented, single-plot reconstructions to a systemic transformation, with 850 projects launched since 2020 comprising 15% of market share.
