02-07-2025
Rustomjee Group to redevelop eight housing societies in Mumbai's Andheri West, eyes ₹3,000 crore in revenue
Mumbai-based Keystone Realtors Limited, popularly known as the Rustomjee Group, announced on July 2 that it has been selected to redevelop eight housing societies as part of a large-scale cluster redevelopment project in Mumbai's Andheri West. The project is expected to generate a revenue of ₹ 3,000 crore from the saleable area. Mumbai-based Keystone Realtors Limited, popularly known as the Rustomjee Group, announced on July 2 that it has been selected to redevelop eight housing societies as part of a large-scale cluster redevelopment project in Mumbai's Andheri West.(Studio Ghibli style image created using Grok Beta)
According to the company, Development Agreements (DAs) have already been executed with five of the societies, while Letters of Intent (LOIs) have been received from the remaining three. Execution of DAs for these is expected in the coming days.
Located in the Lokhandwala area of Andheri West, one of the city's most vibrant residential hubs, the cluster redevelopment covers a cumulative plot area of approximately 4.75 acres (19,229 sq. meters) and includes 548 existing members.
The company said in a statement that the project is expected to unlock approximately 10.6 lakh sq. ft. of saleable area and generate a Gross Development Value (GDV) of ₹ 3,000 crore.
Rustomjee said that the project aligns with its broader strategy of expanding its footprint in key suburban markets and building a diversified portfolio across micro-markets and pricing segments.
With this addition, the company said it has further strengthened its project pipeline for the current financial year, continuing its momentum of acquiring strategically located, high-potential redevelopment projects in key city clusters.
Boman Irani, chairman and managing director of Keystone Realtors Limited, said, 'We are proud to have been selected as the preferred redevelopment partner for this large-format society cluster in Andheri West—one of Mumbai's most dynamic residential neighbourhoods. With a GDV of nearly Rs. 3,000 crore and a significant development footprint, this project exemplifies our focus on scale, location, and value creation."
Also Read: Here's why Mumbai's redevelopment boom is drawing developers from Bengaluru, NCR, and Hyderabad
"We believe that urban redevelopment is not just about creating real estate, but about revitalising communities and transforming the way people live in the city. This cluster-led approach is a testament to the growing trust in Rustomjee's redevelopment capabilities and our consistent track record of timely delivery and thoughtful design," Irani said. What is redevelopment?
In Maharashtra, several old buildings, especially those comprising two to seven storeys, are currently being redeveloped.
Redevelopment of housing projects involves demolishing the old structure and replacing it with a modern, bigger building, subject to various norms.
Also, residents of the old building get larger apartments in the newer building for free, as the builder sells a certain number of apartments in the new building for a profit in the open market. The government also earns revenue by selling the floor space index (FSI) to the builder.
Also Read: Mahindra Lifespaces to redevelop housing project in Mumbai's Mulund with a revenue potential of ₹ 1,250 crore MHADA appoints Rustomjee Group to redevelop 25 buildings in GTB Nagar
Earlier, Maharashtra Housing and Area Development Authority (MHADA) had appointed the Rustomjee Group to redevelop 25 buildings in Mumbai's Guru Teg Bahadur Nagar (GTB Nagar), Sion Koliwada. The project aims to rehabilitate 1,200 Sindhi families who migrated to India from Pakistan after Independence.
The project has a total of 1,200 refugee families and 200 slum dwellers who will be rehabilitated as part of the project.
Spread across 11.20 acres, the redevelopment will generate 25,700 sq. m. of built-up space for MHADA as housing stock, with a permissible Floor Space Index (FSI) of 4.5, including the fungible area.
Also Read: MHADA appoints Rustomjee Group to redevelop 25 buildings in GTB Nagar, home to 1,200 Sindhi refugee families
Under the project, 1,200 families will receive 635 sq. ft. apartments in exchange for their current homes in dilapidated buildings.
