These society redevelopment projects are expected to not only unlock the residential market potential of the city but would also alter the skyline of Mumbai.
Credit: PTI Photo
The housing redevelopment work in India’s financial capital of Mumbai will add a total of 44,277 new homes at the value of Rs 1,305 billion, according to Knight Frank India, a leading independent, global property consultancy. These society redevelopment projects are expected to not only unlock the residential market potential of the city but would also alter the skyline of Mumbai.
According to the report, a total of 910 housing societies have signed development agreements (DA) since 2020, unlocking nearly 326.8 acres (1.32 million sq m) of potential land area, based on FSI utilisation norms and average unit sizes across the regions.
The report notes that an estimated 160,000 societies were over the age of 30 and eligible for redevelopment.
The Western Suburbs, which include high density population locations of Bandra to Borivali can expect to see the addition of the 32,354 new homes forming 73% of the total addition to stock from society redevelopment while South Mumbai would add 416 new housing units.
The state government is expected to generate estimated revenues of Rs 6,500 crores on account of the free sales from the society redevelopment in the next 5 years.
Additionally, the free sales will generate Goods and Services Tax (GST) of estimated Rs 6,525 crores in the same period.
“Society redevelopment in Mumbai is both inevitable and essential, given the city’s limited avenues of greenfield growth and the constant rise in demand. Redevelopment has significantly reshaped the dynamics of several micro- markets and remains a critical driver of Mumbai’s urban renewal,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India.
“The free sale component from society redevelopment is expected to generate approximately Rs 7830 crores in stamp duty and another Rs 6,525 crores as GST. However, the segment today appears overheated and is fast reaching a point of inflection. Rising prices have fuelled commitments that stretch well beyond sustainable limits, while society members’ expectations have grown disproportionately,” he added.