Builders ride the redevelopment wave in major Indian cities

Space crunch, need for efficient land use prompt both firms and govt bodies to follow trend

- ANEEKA CHATTERJEE

India's real estate sector is booming with new-age concepts, and redevelopment is gaining tractioning with new-age concepts, and redevelopment is gaining traction due to space scarcity and the need for efficient land use. These projects span governmental partnerships, societal initiatives, and developer-led efforts.

Mumbai is at the forefront, with dilapidated buildings being continuously modernised. Key micromarkets like Dadar, Prabhadevi, Bandra, Worli, Vile Parle, Juhu, Malabar Hill, and Mahalaxmi are witnessing this trend.

According to Anarock, in the Delhi-National Capital Region, ageing colonies and housing societies are being transformed. Surat is advancing with urbanisation and Smart City initiatives, while Bengaluru is upgrading old residential areas, driven by sector demand and the need for enhanced urban infrastructure.

This trend is revitalising urban landscapes nationwide.

JLL reported that 15-25 per cent of property registrations in Mumbai come from redevelopment, with over 3,500 projects approved by May 2024.

Tier-I developers are increasingly focusing on redeveloping prestigious areas. Developers like Prescon, Kinjal Group, Mahindra Lifespaces, Vascon Engineers, Rustomjee, Kolte-Patil, and Runwal are planning substantial investments to expand their portfolios.Mumbai-based Prescon plans to invest around ₹250 crore in 2024-25 (FY25) towards new opportunities and funding existing redevelopments. In 2023-24 (FY24), the company invested nearly ₹100 crore in ongoing slum rehabilitation projects, including a 250,000-square-foot, 23-floor rehab tower in Mahim.