Mumbai Revamp 3.0 - How Redevelopment is Shaping the City's Future

With over 30 years of experience across real estate, manufacturing, and exports, Sanjay has held leadership roles at top organizations like Runwal Group, Kalpataru, and Pokarna. He is known for his expertise in land acquisition, business development, strategic planning, and legal-financial structuring.

Urban growth in cities across the world is led by development, and Mumbai is no exception. But with a population density of 30,000 individuals per square km, the city has the challenge of improving its housing capacity. Redevelopment has become an essential component of this growth as aging buildings, high repair costs, and the need for reconstruction make it necessary.

With its unique geographical constraints posing a challenge, Mumbai has witnessed a sharp rise in redevelopment projects to meet the expectations of its rising population.

With suburban areas and the island city of Mumbai governed by distinct development regulations, the redevelopment of housing societies comprises opportunities but not without challenges.

An age limit of 30 years or above makes societies eligible for redevelopment, but interestingly, trends in recent times show a shift, as many societies have begun proactively planning a revamp at the 25-year mark. Taking early decisions can shape a better future for city redevelopment. From better planning to the selection of reputed developers, this is a definite solution to ensuring a smoother transition besides a more successful project execution. With timely decisions taken and reliable partners onboard, housing societies eyeing redevelopment can significantly improve their living conditions while contributing to Mumbai’s urban renewal.

A look at data indicates that Mumbai is well on the path to redeveloping housing societies, with over 31,000 projects approved as of May 2024, accounting for 30-40% of the city's total housing developments. However, the process is fraught with legal and bureaucratic challenges, including tenancy rights and stakeholder agreements, which can stall projects for years in the absence of proper guidance and an understanding of the Development Control Regulations (DCR) and tenancy rights laws. To deal with the approval process, which can take up to 18 months, the state government has introduced policies such as an additional Floor Space Index (FSI) of up to 50% and a Single-Window Clearance system meant to help housing societies expedite approvals and achieve project execution.

The rise of cluster development projects is a transformative shift in Mumbai's redevelopment landscape. As integrated layouts, these projects offer modern amenities and improved infrastructure as developers capitalize on consolidating land parcels to create recreational areas, gardens, and community open spaces that enhance urban living. Though stringent plot size requirements remain a barrier where land amalgamation is challenging, cluster redevelopment will eventually become an integral aspect of redevelopment.  

The Unified Development Control and Promotion Regulations (UDCPR) have initiated clarity and transparency in urban planning, while the Auto-DCR system has helped streamline the approval process by automating compliance checks and reducing delays. Progressive redevelopment laws, such as regulations 33(7)A, 33(7)B, 33(12)B, and 33(20)B, have enabled higher FSI and expanded built-up areas. As suburban societies face the issue of aging infrastructure and outdated amenities, redevelopment offers a vital opportunity to upgrade mechanical, electrical, and plumbing (MEP) services, optimize FSI utilization, and improve living standards.  

The success of redevelopment depends on a number of factors, out of which selecting the right project tops the list. For starters, housing societies should partner with a reputable developer with a robust background to ensure timely construction and impeccable quality. Apart from this, independent project management consultants should also be called in to gauge redevelopment potential and conduct feasibility studies. For any project to reach fruition, transparency and proactive engagement from developers are imperative to build trust and ensure transparency.

When it comes to India's financial capital, Mumbai's redevelopment pattern is marked by factors such as varied land ownership patterns, including mill lands, MHADA societies, industrial parcels, and slums. Each of these presents unique challenges that require unique (and out-of-the-box) solutions. For example, mill land redevelopment, governed by DCR 58, allocates land for open spaces, affordable housing, and commercial development. However, ensuring its equitable distribution presents a tricky challenge. On the other hand, when it comes to boosting housing stock, industrial land conversion, when used correctly, can be a key strategy. With newer policies now permitting the rezoning of defunct industrial zones, the pertinent question is whether this will cater merely to private developers or help in allocating affordable housing as well. In this regard, MHADA and the Slum Rehabilitation Authority (SRA) continue to play a key role in redeveloping old, dilapidated structures and slums. Higher FSI incentives under MHADA and in-situ rehabilitation under SRA contribute to the ever-growing urban landscape and, at the same time, look to promptly address the city's housing crisis too.

When it comes to connectivity, Mumbai has always been a front-runner. Whether it is Transit-Oriented Development (TOD), the Mumbai Metro, or the Coastal Road, they have all drastically reduced commute time, thus uplifting the appeal of redeveloped societies. On the other hand, the COVID-19 pandemic has changed our way of living, and homes are no longer confined to simple living spaces. Greener and open spaces, sustainable designs, and eco-friendly materials are now the demand of the hour, and hence, redevelopment projects must look at energy efficiency and reducing environmental impact in the long run.  

To secure favorable deals, it is imperative for housing societies to define clear tender criteria. This includes crucial factors like additional carpet area, rent for alternative (interim) accommodation, corpus funds, shifting costs, and adequate parking. These, at the onset, must be outlined clearly, as a well-structured tender document ensures informed decision-making and protects residents' interests at large.

At the end of the day, the aim of redevelopment is not just to erect taller structures but to create homes that are comfortable, sustainable, and, most importantly, futuristic. When it comes to older buildings, they often miss basic amenities like elevators, parking, and energy-efficient systems. To solve this issue, developers are now looking at technologies like smart water management, solar panels, high-speed elevators, and green initiatives to enhance long-term sustainability.  

Redevelopment as a whole should not just upgrade an individual living space but also enhance the overall surroundings of the locality. Prime properties in Mumbai see a marked increase in value post-redevelopment, which, in turn, contributes to local economic growth. Not only have that, but the plush infrastructure and modern amenities also contributed to a long-term, healthy, and vibrant living environment.  

The city’s redevelopment plan also falls in line with major infrastructure developments that are set to transform the city soon. To kick things off, Metro Line 3, which is the first underground metro here, will reduce commute time drastically. The Coastal Road, on the other hand, connects South Mumbai with the Western suburbs in just 40 minutes, compared to the two hours it usually takes. These projects will not only make life easier for lakhs of everyday commuters but also boost quality of life and enhance property value, thus contributing to the overall welfare and happiness quotient of residents.

Redevelopment is set to transform the city while deftly balancing economic growth, housing demand, and sustainability. As housing societies navigate the ever-changing tapestry of Mumbai, what is key to the process as a whole is informed decision-making, strategic partnerships, and proactive governance. By carefully and holistically planning redevelopment, Mumbai will soon embark on a new identity—one that is inclusive, economic, and dynamic for generations to come.