4 days ago
Drawn by demand and high returns, non-Mumbai developers rush to tap city's booming realty market
Mumbai's property market is attracting developers nationwide due to sustained demand and redevelopment potential. Encouraged by high prices and limited land, firms from Bengaluru, Delhi NCR, and Pune are entering through joint ventures and other partnerships. Redevelopment projects, including slum rehabilitation, offer significant opportunities, despite challenges like high costs and regulatory hurdles.
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Mumbai: Mumbai is experiencing a rush of property developers from other parts of the country, drawn by sustained demand and the long-term potential of redevelopment-led activity in India's biggest and priciest property by elevated prices amid limited land parcels, developers from markets such as Bengaluru, Delhi NCR and Pune are looking to get a foothold in housing market in India's financial hub continues to record robust performance in registrations and high-value transactions across key micro-markets, attracting developers from outside the the financial appeal of Mumbai's realty market remains strong, challenges persist. High construction costs, complex land ownership structures, and regulatory timelines remain key hurdles."Developers from diverse geographies are entering Mumbai buoyed by financial backing from private equity, and institutional funding under joint venture, joint development, or development management business models," said Niranjan Hiranandani, chairman, Naredco. "Redevelopment projects, including society and slum rehabilitation, stand out as untapped opportunities for these players, often implemented in collaboration with local developers for smoother navigation through approvals, compliance mechanisms, and on-ground execution."Recently, New Delhi-based DLF re-entered the market through a joint venture for a project related to slum rehabilitation scheme in Mumbai's Andheri suburb. The company said it has received bookings for over 416 apartments worth ₹2,300 crore in the project's first phase and 20% buyers are non-desident Indians (NRIs)."Our entry into Mumbai represents a significant strategic milestone for DLF," said Aakash Ohri, joint MD, DLF Home Developers, a 100% subsidiary of non-Mumbai entities including Prestige Group, Embassy Group, RMZ, Puravankara , Blackstone-backed Kolte Patil Developers , and Ramky Estates & Farms have entered the Mumbai property market. Many more are currently exploring options. Most of these have reported robust sales performance on the back of ongoing steady housing demand."The interest from non-Mumbai players for an entry here has grown sharply in recent quarters. For many of them, the partnership model works out to be the best strategy with local execution support, reduced risk, and the ability to leverage a brand," said Gulam Zia, senior executive director, Knight Frank contributed nearly 28% of the total residential sales value across the top eight cities in the first half of 2025, making it a key target for developers."Mumbai appears to be a huge opportunity for a developer like us with a good execution track record. We are fully equipped to manage little complexities in the growth journey. We have so far acquired 7 key projects in the city including South Mumbai," said Rajat Rastogi, CEO, west and commercial business, to industry experts, Mumbai's redevelopment-centric approach shaped by regulatory frameworks such as Development Control & Promotion Regulations (DCPR) 33(7), 33(9), and slum rehabilitation schemes require experience in handling tenant consent, approvals, and municipal processes. This regulatory complexity continues to deter direct entry for many national developers, making partnerships a preferred from Mumbai and its suburbs, satellite towns including Thane and Navi Mumbai, and peripheral markets are also being explored by developers.
