Realty developers Prestige Group, RC Group and Valor Estate are in advanced talks to undertake one of the largest cluster redevelopment projects of public housing colonies in Mumbai, said people aware of the development.
The project involves redevelopment of 19 housing societies spread over four acres in the city’s Bandra locality, and is estimated to have a gross development value (GDV) of Rs 7,000 crore, they said.
“As per the terms of the tripartite agreement to be inked soon, Prestige Group will drive the project, taking charge of designing, financing and constructing the redevelopment to deliver modern residential complexes,” said one of the persons cited earlier.
RC Group and Valor Estate will focus on facilitating the pact, securing regulatory approvals and managing the coordination between various stakeholders, ensuring the smooth execution of the project, the person said.
Another source said, “Once the agreement is concluded, the joint entity will apply for the floor space index that needs to be granted by the housing body MHADA. The project’s construction is set to commence in the first quarter of 2025-26, with completion targeted to be within four years after the agreement gets signed.”
Email queries sent to Valor Estate and RC Group remained unanswered as of press time, while Prestige Group declined to comment.
The development proposal assumes significance as the project is being executed in the absence of a formal Mhada cluster redevelopment policy, and the execution relies on the collaboration between developers, facilitators and residents.
According to experts, the proposed project not only addresses the urgent need to revamp aging Mhada housing but also serves as a model for large-scale urban renewal efforts.
Mumbai has more than 104 Mhada colonies potentially suitable for redevelopment, which could unlock a market worth over ?1 lakh crore through similar redevelopment projects, further driving growth and urban renewal in the city.
The collaboration between these developers highlights the potential of aligning private sector expertise with public housing needs, especially in the absence of formal policies.
Redevelopment is the mainstay of Mumbai’s property market in the backdrop of the city’s space constraints, aging infrastructure and high demand for modern housing. With limited land availability for new developments, redevelopment projects provide a viable solution by rejuvenating old buildings, ‘chawls’ and dilapidated structures, transforming them into state-of-the-art residential and commercial spaces.
The Maharashtra government’s supportive policies, such as increased FSI (floor space index) and incentives for developers, have supported redevelopment activity, helping residents of such old buildings with improved living conditions and modern amenities.
As the city continues to expand vertically, redevelopment remains a crucial strategy for sustainable urban growth and revitalization.
