Mumbai is on the cusp of an urban transformation, driven by the pressing need to replace ageing, unsafe buildings with modern, high-density developments. The scale and pace of redevelopment across the city is unprecedented 鈥� and yet fraught with complexity.Redevelopm...
Mumbai is on the cusp of an urban transformation, driven by the pressing need to replace ageing, unsafe buildings with modern, high-density developments. The scale and pace of redevelopment across the city is unprecedented 鈥� and yet fraught with complexity.Redevelopment has become a defining strategy for urban renewal in Mumbai. One of the most challenging aspects is the displacement it entails 鈥� residents are often required to vacate their homes and live in transit accommodations until the new structures are ready. This raises valid concerns: Will the transit housing meet our needs? Will the new homes be ready on time as promised? The fear is greater for those whose livelihoods are deeply tied to their current neighbourhoods, or for those living in cramped apartments under 400 sq ft.The scopeBhendi Bazaar, near Crawford Market in South Mumbai, has already completed its first phase and is now in Phase 2. Kamathipura has received a green light and MHADA has floated tenders for a construction and development agency for the 34-acre cluster redevelopment. Dharavi, Asia鈥檚 biggest slum spread across 600 acre, has received approval from the Maharashtra Cabinet, with nearly 300 acre earmarked for redevelopment and rehabilitation.Once the Maharashtra government amended its cluster redevelopment policy in 2009, the Saifee Burhani Upliftment Trust (SBUT) launched a comprehensive 16.5-acre rehabilitation plan. This included 1,250 enterprises, 3,200 residents and over 250 deteriorating buildings, all set to be replaced by 11 high-rise towers designed to accommodate over 20,000 residents and 1,250 commercial units.Mumbai's residential market is approaching a value of Rs 1.5 trillion, with 6-7 million housing units. The city registers annual sales of around 150,000 units and currently has an unsold inventory of over 120,000 units.According to CREDAI-MCHI, 25,000 buildings in the Mumbai Metropolitan Region (MMR) are over 30 years old and, hence, eligible for redevelopment under DCPR 2034 Sections 33(7)/(7A)/(7B). Currently, rough estimates suggest that more than 5,000 redevelopment proposals are in various stages. Given the high pace of construction between 2003 and 2011, the number of structures crossing the 30-year mark will grow exponentially over the next 15 years.Ranked among the top five most densely populated cities globally, Mumbai has an annual population growth of over 1 per cent. With nearly 70 per cent of its residents of working age and around 35-40 per cent under the age of 25, it presents a strong case for focused redevelopment.Community impactThat said, the redevelopment story is not without its share of joys and heartaches. Redevelopment involves uprooting people and resettling them either in new locations or the same one 鈥� albeit with improved living standards.The Bhendi Bazaar project faced significant hurdles in persuading residents to shift to transit spaces. A major concern among shopkeepers was the loss of business due to declining footfall during transition. To address this, the Trust constructed a temporary onsite commercial facility within the project area. In 2015, the project received IOD approval and a commencement certificate. By 2016, the Trust had acquired 215 of the 250 buildings. Of these, 70 were demolished and 1,700 families were rehabilitated in purpose-built transit homes provided free of cost until their new homes were ready. In 2017, the project secured environmental clearance. However, tragedy struck the same year when a five-storey residential building 鈥� part of the redevelopment 鈥� collapsed following heavy rains, resulting in multiple deaths and injuries. The Trust responded with a mass awareness campaign titled Behtar Kal, along with a Monsoon Awareness Walk to emphasise upon the risks of inhabiting unstable structures.In neighbouring countries, similar challenges exist. Thailand鈥檚 relocation projects struggled when new sites cut off social and economic networks. In contrast, Jakarta鈥檚 KIP project demonstrated how empowering communities to design and implement solutions can lift living standards without causing social trauma.Funding and executionSince redevelopment is time-consuming, it is critical to evaluate financial viability in relation to project timelines, projected demand and pricing assumptions. While the current real-estate market remains upbeat, developers must plan for potential downturns by the time they bring saleable inventory to market.鈥淟et me make a bold statement to provoke some thought: Real estate, as it stands today, is no longer a viable business,鈥� remarks Sanjay Dutt, MD & CEO, Tata Realty & Infrastructure. 鈥淰iability today depends not just on market demand but on getting your act together across compliance, regulation and predictability.鈥� Bamashish Paul, Cofounder, Marketing Partner & CEO, Etonhurst Capital Partners, highlights that the cost of capital is significantly higher than traditional lending because of the many unknowns. 鈥淚f a substantial part of the project timeline is spent on legal proceedings, that delay becomes expensive. We price that into our risk premiums 鈥� which is why you鈥檙e looking at 16-20 per cent rates.鈥漀irav Parmar, Former Executive Vice-President Contract & Procurement, Shapoorji Pallonji Real Estate, and Advisory Board Member MCHI 鈥� CREDA Procurement Forum, further explains that unpredictability now defines redevelopment. 鈥淚n the past, you needed funds mainly for construction. Today, you need capital even before you lay a brick 鈥� just to complete preconstruction work like legal clearances, tenant negotiations and title checks.鈥滺e notes that while there鈥檚 a growing number of financing options for redevelopment, execution is lagging behind: 鈥淭here鈥檚 a growing imbalance; many developers are focused on raising capital but neglect the actual delivery of the project. This hurts morale and momentum on the ground.鈥滲hendi Bazaar: A case study in progress and sustainabilityDespite setbacks, Bhendi Bazaar marked a significant milestone with the completion of Al Sa鈥檃dah Towers 鈥� two high rises of 36 and 41 storeys 鈥� that now house 128 businesses and 610 families. Phase 2 of the project is underway and will involve two 53-storey towers replacing 23 decaying structures. These will accommodate about 1,250 families and over 270 commercial establishments.The project has also incorporated several sustainable practices. Rooftop solar panels with a combined capacity of nearly 600 kw now power lighting in public areas such as staircases and streets. Electrical systems have been modernised to improve efficiency and reduce losses. Rainwater harvesting systems and modern sewage treatment plants (STPs) recycle water for non-potable uses. Stormwater drainage has been enhanced and vertical garbage chutes facilitate wet and dry waste segregation in every building.The path forwardPlanning remains the bedrock of sustainable redevelopment, particularly in a brownfield context like Mumbai. As SVR Srinivas, CEO, Dharavi Redevelopment Project, puts it: 鈥淲ithout planning, no project can start, if you ask me.鈥� He calls for integrated master plans that synchronise spatial layout with timelines. 鈥淪maller plots often lead to fragmented compliance. We need calibrated, cluster-based planning.鈥� On the regulatory front, Srinivas adds: 鈥淔SI is not just government property 鈥� it鈥檚 an instrument to drive redevelopment. Larger cluster-based projects ensure better city-level outcomes.鈥滵r Niranjan Hiranandani, Chairman, Hiranandani Developers, echoes this, laying stress on the need to cut delays and systemic inefficiencies. 鈥淟et architects approve building plans, like passports are issued by TCS. We鈥檒l reduce cost by 10 per cent and save a trillion-rupee industry from inefficiency.鈥� He also criticises excessive levies: 鈥淕overnment charges now account for nearly 50 per cent of a flat鈥檚 price. How is affordability even possible?鈥滵eepak Goradia, Chairman and Managing Director, Dosti Realty, supports this view. 鈥淚t often takes two years after an LOI to get all approvals. By then, market dynamics have shifted.鈥滱r. Manoj Daisaria, Past President, PEATA, compares the regulatory framework to a buffet: 鈥淭here are many schemes 鈥� 33(7), 33(9), 33(11), 37B 鈥� and each one must be carefully chosen based on feasibility, location and tenant mix.鈥� He pushes for unified planning mechanisms, saying, 鈥淵ou can鈥檛 have different rules from different authorities on the same proposal.鈥滷rom a legal standpoint, Adv. Harshad Dhadbhade, President, Bar Association of MahaRERA and MahaREAT, raises a red flag about tenant protections, 鈥淢ahaRERA must extend to rehabilitation units,鈥� he avers. 鈥淭enants have no grievance redressal mechanism; that鈥檚 a serious loophole.鈥滱 builder rating system, faster heritage approvals and a centralised portal for architect-vetted proposals are key to streamlining redevelopment. Cluster schemes under 33(9) offer the most scalable path 鈥� provided regulatory clarity, market feasibility and timely execution are ensured.(These insights and quotes were shared by industry experts during the recently concluded Mumbai Redevelopment Summit 2025.)
