Mumbai’s redevelopment market is moving into a demand-led phase, with sales exceeding new launches in 2025-H1 2026 and redevelopment accounting for 14.7% of housing sales, up from 5.9% in 2016-2021.
The findings are from JLL–NAREDCO’s Redevelopment in Mumbai: The Inflection Point, released at NAREDCO Maharashtra’s Real Estate & Infrastructure Investors’ Summit 2026 in Mumbai. The report says redevelopment is becoming a key route for adding housing in a city facing an acute shortage of developable land.
More than 1,000 redevelopment projects have been launched in Mumbai since 2020, accounting for about 13% of the city’s residential launches. The latest data points to a clear change in market dynamics: launches surged in 2022-2024, but by 2025-H1 2026, sales had overtaken new launches. The report describes this as a shift from a policy-driven launch boom to a more stable, demand-led market.
The fundamental constraint is Mumbai’s scarcity of developable land. The report says the city has “an absolute scarcity of developable land”, while much of its ageing housing stock was built before 1996. Redevelopment has therefore moved beyond being a real estate opportunity to becoming an essential means of renewing existing housing stock.
“The market has graduated from fragmented, single-plot reconstructions to a systemic transformation,” said Karan Singh Sodi, Senior Managing Director, Mumbai MMR & Gujarat and Alternatives, India, JLL, in the press release accompanying the report. “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.”
The scale of the replacement requirement is substantial. Mumbai has about 13,500 cessed buildings, with Western Suburbs II accounting for 22.4% of the cessed stock, followed by Western Suburbs I at 21.6% and North Mumbai at 17.2%. South Mumbai accounts for another 14.2%. According to the report, redevelopment activity over the next 10-15 years is expected to remain concentrated in mature western and southern markets, where ageing structures coincide with established connectivity and land scarcity.
Slum redevelopment represents an even larger pipeline. The report identifies 1,202 active projects covering 321,858 hutments across 2,156 acres, compared with 631 projects covering 556 acres completed since the Slum Rehabilitation Authority (SRA) was formed in 1995, rehousing about 294,000 families. The current active pipeline is therefore nearly four times the acreage completed over the previous 30 years.
This scale is also changing the development model. The JLL-NAREDCO report argues that Mumbai needs to move beyond isolated building-by-building redevelopment towards cluster redevelopment, particularly where multiple plots and ageing buildings can be consolidated. Cluster schemes can access up to 4.0 floor space index (FSI) and allow density to be accommodated through taller structures while creating shared open spaces, wider roads and consolidated parking. Under Regulation 33(9) of the Development Control and Promotion Regulations for Greater Mumbai (DCPR 2034), public amenity space is set at 5% of plot area for schemes between 4,000 and 10,000 square meters (sq m) and 10% for larger plots.
The economics, however, vary sharply across Mumbai. Worli commands redevelopment capital values of ₹1 lakh-₹1.15 lakh per square feet (sq ft), with 25%-28% growth over three years, while Bandra-Khar is at ₹90,000-₹95,000 per sq ft, with 25%-30% growth. In Kandivali-Borivali, values are lower at ₹32,000-₹37,000 per sq ft, but have still increased 20%-25% over three years.
Infrastructure is emerging as another major determinant of where redevelopment will move next. The JLL-NAREDCO study identifies a progression from infrastructure to land-value re-rating, redevelopment and sales. Western Suburbs II accounts for 25.03% of redevelopment launches, supported by Metro Lines 2A and 7, while the Eastern Suburbs contribute more than a fifth of activity. Thane and Navi Mumbai are beginning to establish redevelopment footprints as new transit links improve accessibility and land values.
Looking ahead, JLL and NAREDCO identify two broad redevelopment opportunities: renewal of legacy housing stock in mature western and southern markets, and infrastructure-driven conversion of industrial and CIDCO layouts in the extended eastern and Navi Mumbai markets.
Regulatory changes are supporting that transition. The report points to DCPR 2034’s 51% consent threshold, differentiated redevelopment routes and higher FSI, while self-redevelopment has reached more than 1,600 active proposals.. It says these changes are directing redevelopment towards a more structured model, while higher FSI has strengthened the economics of cluster and slum projects.
According to Kamlesh Thakur, President, NAREDCO Maharashtra, the shift also requires faster and more transparent execution. “As we navigate the urgent need to replace thousands of aging cessed structures and unlock land potential, NAREDCO Maharashtra remains committed to driving transparent, sustainable urban renewal,” Thakur said, adding that the organisation would continue working with government bodies, institutional partners and resident societies to accelerate project execution.
