Developers Nationwide Rush to Mumbai as Redevelopment Fuels New Gold Rush

Mumbai’s Redevelopment Boom Attracts Builders from Across India

Mumbai’s real estate market is experiencing a dramatic transformation, with a post-pandemic resurgence fueling a wave of redevelopment projects across the city. While local developers have long dominated this landscape, a new chapter is unfolding as ambitious builders from Bengaluru, NCR, and Hyderabad set their sights on Mumbai’s lucrative opportunities.

Hyderabad’s Ramky Estates Makes a Bold Debut

A striking example of this trend is the entry of Hyderabad-based Ramky Estates & Farms, which has acquired development rights for a 1.5-acre slum rehabilitation project in Chembur. This marks Ramky’s first foray into Mumbai, where it plans to develop nearly 5 lakh sq ft of space with a projected revenue potential of ₹500 crore. The move signals not only Ramky’s ambitions but also the magnetic pull of Mumbai’s redevelopment sector for outstation developers.

A Two-Way Street: National Expansion by Indian Developers

The last decade has seen a cross-pollination of real estate giants across India’s major cities. Leading names such as Prestige Group, Puravankara, and DLF have either entered or announced plans to enter Mumbai’s market. Meanwhile, Mumbai-based Lodha Group and Godrej Properties have expanded into Bengaluru, Pune, and other key cities, aiming to become true pan-India players.

Why Mumbai? The City’s Unique Allure

For developers from cities like Bengaluru, Delhi, and Hyderabad, Mumbai represents both the ultimate challenge and the ultimate reward. Many markets outside Mumbai are becoming saturated or lack the dynamism of India’s financial capital. As one Mumbai-based developer explained, “My profit margin in Mumbai is ₹30,000 per square foot, and there are only a few select projects in India that offer such high margins while maintaining a practical scale. The revenue generated from a single square foot in Mumbai would require building 15, 20, or even 25 square feet in other Indian cities.”

This stark difference in profitability is why Mumbai-based developers are selective about venturing outside, while developers from other regions are eager to tap into Mumbai’s high-yield market.

The Strategic Appeal of the Mumbai Metropolitan Region

According to Rajat Rastogi, CEO - West and Commercial Assets at Puravankara Limited, the Mumbai Metropolitan Region (MMR) is a natural choice for expansion. “MMR is the largest real estate market in the country, comparable in size to the entire South Indian market. It caters to diverse buyer segments, from ultra-luxury residences to affordable housing,” he notes.

While Mumbai’s market has seen relatively few new entrants compared to Delhi NCR, this is changing. DLF is set to make its Mumbai debut soon, with a careful and confident approach. “Whether the market is high or low, one has to be careful and cautious. If you are a long-term player, you must be a marathon runner,” said Aakash Ohri, DLF’s joint managing director, in March 2025.

Lodha Group’s Bengaluru Ambitions

On the other side of the country, Lodha Group is making significant strides in Bengaluru. Abhishek Lodha, Managing Director and CEO of Macrotech Developers, shared that the company’s pilot phase in Bengaluru has concluded successfully, and they are targeting a 15% market share in the IT city by the end of the decade. “We focused on building a strong local operating team, understanding local nuances, and showcasing our delivery to consumers,” Lodha said during the Q2FY25 earnings call.