South Mumbai Sees Surge in Real Estate Redevelopment Projects— Catering to Luxury Homebuyers

South Mumbai: Once home to India’s priciest residential micro-markets, is witnessing a notable shift in its real estate landscape. In recent years, Central Mumbai and the Bandra Kurla Complex (BKC) have become attractive commercial districts, leading to a migration of residential real estate demand to these locations.

To meet the growing demand, several micro-markets in South Mumbai, including Malabar Hill, are undergoing significant redevelopment. Key real estate players like Lodha Group, Godrej Properties, Runwal, Kalpataru, and K Raheja have launched projects featuring 2, 3, and 4 BHK apartments in these areas.

The ongoing redevelopment work is expected to drive rental values higher, presenting challenges for prospective tenants. Savills India, a real estate consultant, predicts that Grade A developers will continue to seek redevelopment opportunities in South Mumbai and Central Mumbai, leading to an upward trend in rental values in the long run.

South Mumbai is renowned for hosting traditional central business districts like Nariman Point, Cuffe Parade, Ballard Estate, and Fort. This micro-market houses numerous mid-size private companies, professional offices, and government-related businesses serving ultra-high net worth individuals (UHNIs). South Mumbai is also home to old and dilapidated buildings, including heritage structures and over 10,000 dilapidated buildings in the city, predominantly in this area.

According to Savills India, Malabar Hill, Walkeshwar, and Nepean Sea Road in South Mumbai are witnessing a surge in redevelopment projects by reputable developers. The trend shows that homebuyers prefer larger apartments, with chief executive officers (CEOs) and industrialist families being prominent buyers in this segment.

The luxury housing market has seen notable growth, with sales of houses costing Rs 10 crore and above increasing by over 60% in the first half of 2023 compared to the preceding half-year. South Mumbai and Central Mumbai micro-markets have contributed significantly to this surge, driven by the demand for larger spaces in the post-COVID-19 era.

South Mumbai enjoys excellent connectivity through various railway stations and well-developed road networks. Upcoming infrastructure projects such as the Colaba-Seepz Metro-3 and CST-Thane Metro-4 corridors, along with the Coastal Road and Mumbai Trans Harbour Link, are expected to further improve accessibility to the area.

Developers like Lodha Group, Godrej Properties, Prestige Group, Runwal, Kalpataru, K Raheja, and Oberoi Realty are actively engaging in development projects in South Mumbai. With the scarcity of land in Mumbai, the premium location of South Mumbai makes it a preferred destination for luxury home development.

The residential properties offered by developers in South Mumbai range from 2 to 5 BHK apartments, penthouses, duplexes, and triplexes, priced between Rs 35,000 and Rs 1.50 lakh per sq ft. Rental values for 2 BHK apartments can range from Rs 1 lakh to Rs 6 lakh, depending on the age and location of the property.

As the area metamorphoses into a major real estate redevelopment hub, developers are capitalizing on the scenic views and strong connectivity South Mumbai offers, catering to the lifestyle demands of luxury homebuyers.

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