Here’s why Mumbai’s redevelopment boom is drawing developers from Bengaluru, NCR, and Hyderabad

One such entrant is Hyderabad-based Ramky Estates & Farms, which has made its debut in the Mumbai market by acquiring development rights for a 1.5-acre slum rehabilitation project in Chembur.

This marks the company’s first venture in Mumbai and signifies its expansion into India’s financial capital. The company is developing close to 5 lakh sq ft on 1.5 acres of land with slum structures on it. According to media reports, the revenue potential of the project is around ₹500 crore.

In the past decade, at least half a dozen real estate developers from Mumbai and Bengaluru have expanded their presence outside their home bastions.

Several firms, such as Bengaluru-based Prestige Group, Puravankara and Delhi-based DLF, have either entered or announced their foray into the Mumbai real estate market.

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Similarly, Mumbai-based realtors such as Lodha Group expanded their footprint in Bengaluru and Pune, and Godrej Properties has entered Bengaluru, Pune, Nagpur, Indore, Nagpur, Delhi NCR, Ahmedabad, Hyderabad, among several others, in a bid to become a national player.

Why are real estate developers from outside Mumbai rushing to redevelop the city?

For real estate developers from cities like Bengaluru, Delhi, and Hyderabad, Mumbai represents the ultimate challenge and reward. While their home markets may be saturated or not as dynamic, Mumbai offers vast potential, albeit with its own set of complexities.

A Mumbai-based real estate developer, speaking on condition of anonymity, said, “I’ve received numerous proposals from Pune, many involving large land parcels. However, I remain optimistic about mid-sized redevelopment projects in Mumbai. There are two key reasons for this: 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 developer, who preferred to remain anonymous, added, “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 is why Mumbai-based developers are not in a hurry to venture outside, unless they aim to diversify geographically. However, there is certainly a rush among developers from outside Mumbai eager to enter the city’s real estate market.”

Also Read: Housing societies can soon avail loans for self-redevelopment at concessional rates: Maharashtra CM

According to Bengaluru-based Puravankara Limited, the Mumbai Metropolitan Region (MMR) is a natural choice because of its sheer size.

“The Mumbai real estate market is a natural choice for expansion for several reasons. First, the Mumbai Metropolitan Region (MMR) is the largest real estate market in the country, comparable in size to the entire South Indian market. Additionally, MMR caters to diverse buyer segments, offering a wide range of products from ultra-luxury residences to affordable housing,” said Rajat Rastogi, CEO – West and Commercial Assets, Puravankara Limited.

Unlike the Delhi NCR market, Mumbai’s real estate sector has seen relatively few notable new entrants. However, DLF is set to make its debut in Mumbai in the coming months. In March 2025, Aakash Ohri, DLF’s joint managing director, stated that the company is approaching the upcoming launch with a mindset that is “careful, cautious, and confident” but not “overconfident.”

Real estate developers believe that now is the right time for stable players to consider expanding into new geographies, as the current cycle is expected to create a favourable ecosystem for growth.

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“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. There are times when you sit down and take a break, and there is no harm in it. But let me say this: the real estate story has begun. The real estate cycle is just three years down now, and if I see data, I feel I clearly have a five-year run subject to several other factors,” Ohri had said in March 2025.

On the other hand, Abhishek Lodha, Managing Director and CEO of listed real estate firm Macrotech Developers, also known as Lodha Group, said that the company has concluded its pilot phase in Bengaluru and is targeting a market share of 15% in the IT city by the end of the decade.

The company’s pilot phase in Bengaluru has been concluded successfully. As you are aware, when we entered Bengaluru in mid-2021, we had mentioned that we would be in the pilot phase for 2-3 years during which we would focus on building a strong local operating team, understanding local operating nuances, and making sure that we can showcase our delivery to consumers,” Lodha said during the Q2FY25 earnings call.