WILL MUMBAI REDEVELOPMENT PROMISE FUTURE LIVEABILITY

With over 30,000 redevelopment projects sanctioned and from single building redevelopment to cluster redevelopment, developers, advisors, and policymakers are now working in tandem to balance density with better living conditions in Mumbai. Dr. Adv. Harshul Savla, D.Litt., Developer & Best-Selling Author commented, Redevelopment is the buzzword in Mumbai today, but the question is in the next 10 years, what will the city look like, given that low rise buildings are giving way to tall towers. Are we overburdening the utilities infrastructure, creating ghettos or the Mumbai infrastructure too will upgrade in coming times to keep pace with housing redevelopments. With Mumbai Metropolitan Region (MMR) contributing nearly one-third of India’s organized real estate sales, the stakes are high and the momentum is relentless. Societies are negotiating like seasoned stakeholders.”

Legal Labyrinths: Structuring Redevelopment for Stability

The rise of informed societies—often backed by top-tier law firms—has changed the game. Lenders, too, are more assertive, demanding mortgage rights, enforceable securities, and cross-default protections. But this assertiveness can trigger friction. If a developer defaults, the society may want to terminate. Yet doing so could expose them to litigation from free-sale buyers or enforcement action from lenders. Amit Wadhwani, Partner – Real Estate, Khaitan & Co explained legal aspects there’s a lot of excitement on redevelopment uh we’ve seen tenders being fille, “Earlier redevelopment was a niche segment with only few developers, now redevelopment is going mainstream with almost all big developers foraying into this segment. While a decade ago, it was the developer that dictated the contracts, now the housing societies are engaging top law firms to represent their interests. What I always suggest is that societies should not get too greedy and go ultra-legal i.e. contracts with strong termination clause or other definitive clauses that may hamper the process or impact developer’s funding strategy. Because, if the case goes in NCLT or IBC or RERA forum, the project may get suck for years. Societies, lenders, and developers must sit across the table and structured documents and fallback options.”

Developer Vision: Quality, Density & Design

In Mumbai, where land is scarce and verticality is inevitable, the real challenge isn’t just building higher—it’s building better. Lalit Lahoty, Regional Head – Mumbai, Sobha Ltd., puts it plainly “Redevelopment is a necessity and with infra upgrades, 10–15 micro-markets will stabilize. Sobha’s entry into Mumbai redevelopment is supported by Sobha’s backward integration that will ensures quality. Cited as a case study by Harvard— it breaks down the entire construction lifecycle into 28 activities, each governed by SOPs, lab tests, and over 1,400 quality checkpoints. In a city where timelines often trump quality, this approach is a quiet revolution.”

Cluster Redevelopment: Liveability at Scale

As Mumbai’s redevelopment accelerates, cluster development is emerging as the city’s most promising model for liveability— especially in high-density zones. Milind Changani, Co-Founder – Stallion Buildtech LLP and Partner – CY CORP shares “If you only chase financial feasibility and ignore liveability, you’ll create vertical slums. Cluster development enables amenities like 65,000 sq ft clubhouses and better design outcomes. In a city where maximizing FSI has long been the default strategy, the consequences are visible—overcrowded towers, poor ventilation, and minimal community spaces. Cluster development flips that script. By aggregating land parcels and aligning stakeholders, it enables holistic planning: wider internal roads, integrated waste management, and amenities that scale with population.” From a developer’s lens, clusters also offer cost efficiencies—30% lower per-unit construction costs and reduced duplication of services. For residents, it means better light, air, and access to shared amenities and facilities.

Ground Realities: Emotional Resistance & Structural Urgency

Redevelopment in Mumbai isn’t just about transforming buildings, but also involves emotional uprooting. Mumbai’s aging housing stock—much of it built before the 1980s—is increasingly unsafe. Yet convincing residents to vacate often requires more than incentives. Nitesh Gangaramani, Managing Director – Nyshaa Realty, shares a personal example “My grandmother refused to leave her 1979 home and a slab collapse nearly turned tragic in our dilapidated building. It was a sobering reminder that emotional resistance can delay urgent structural upgrades and can put lives in danger. The challenge isn’t just engineering— it’s empathy. Developers and societies must now factor in psychological readiness alongside technical feasibility. We need counsellors to educate seniors.”

Self-Redevelopment: Potential Future Model

Housing societies, especially those with smaller plots or t ight-knit communities, are increasingly exploring self redevelopment as a way to retain control, maximize benefits, and avoid the uncertainties of external developer tie-ups. But while the intent is strong, the execution often falters— primarily due to financing hurdles. Sanjay Daga, Founder & CEO – Anex Advisory, offers a pragmatic solution “We suggest societies appoint development managers who bring in initial funds, manage approvals, and handle cash flows. Surplus gets distributed to members—win-win. This development management (DM) model is gaining traction. It allows societies to retain ownership while outsourcing execution to professionals who understand the regulatory maze, funding cycles, and construction timelines. Advisory f irms are now structuring hybrid models, bringing in private equity, NBFCs, and even family offices to support self redevelopment. The biggest challenge? Convincing society members to mortgage land titles or approve external funders. Emotional resistance and lack of financial literacy often stall progress. That’s where advisors step in—not just as consultants, but as enablers of trust.”

Redevelopment & Family Offices & Corporate Funds

Mumbai’s redevelopment new model is quietly gaining traction, where family offices take on the complex task of plot clearance, and corporate developers step in to execute the build. It’s a strategic handshake between agility and scale, risk and reliability. Sujay Kalele, Founder & MD – TRU Realty observes “Family offices can take on the risk of vacating plots, while corporates complete the development. This wasn’t common earlier—it’s now a trend. Family offices, often deeply rooted in local com munities, are better positioned to navigate sensitive negoti ations with society members, handle tenant rehousing, and manage early-stage approvals. Corporates, with their execution muscle, are more suited to deliver the final product—on time. By splitting the lifecycle, both entities play to their strengths.” As Mumbai’s redevelopment matures, the new evolving approaches could unlock thousands of stalled projects and now the state government too is incentivizing redevelopment.