2 weeks ago
How older neighbourhoods across India are embracing redevelopment
Many cities in India are getting new homes built where old buildings and empty land used to be.
This is called redevelopment.
In Navi Mumbai, the government worked with a famous architect to build houses that people can afford.
These houses are close to trains and buses, so people do not have to travel far.
More than 70,000 such homes have already been built.
In Delhi, a big company called DLF turned an old factory area into tall, fancy apartment towers.
Some projects work really well, but others have problems.
In a place called Kathputli colony, people are still waiting for their new homes after many years.
That is why smart planning and good teamwork between the government and builders matter a lot.
Navi Mumbai's CIDCO, with architect Hafeez Contractor, targets over 55 million sq ft of PMAY-compatible affordable housing across 24 underused state-owned sites.
CIDCO has delivered nearly 70,000 affordable homes in prime locations over seven years, priced between Rs 25 lakh and Rs 97 lakh per unit.
DLF transformed a 38-acre Moti Nagar industrial plot into high-rise projects like Capital Greens and One Midtown, selling Rs 1,500 crore of inventory within days.
The Kathputli colony redevelopment by the Raheja group has stalled due to financial problems and unclear policies, leaving relocated residents in transit camps for over a decade.
Mumbai's 2025 Bandra Bay project is redeveloping an entire precinct with a common land-lease structure into a premium neighbourhood.
- Who
- Urban planners, developers such as CIDCO, DLF, the Raheja group and Meghna Realty, and Indian city governments.
- What
- Redevelopment of older neighbourhoods to create affordable and premium housing and regenerate underused urban land.
- Where
- Navi Mumbai, Mumbai and Delhi in India, with a similar proposal being considered for Surat in Gujarat.
- When
- From 2007-2009 onwards, with CIDCO delivering homes over the past seven years, Bandra Bay launched in 2025, and a new 2026 housing edition now open.
- Why
- To unlock land value, provide affordable housing near transport hubs, and address health risks and social divides created by ageing buildings.
Redevelopment as a fix for cities
Redevelopment's human cost
Success of redevelopment models
Redevelopment as a fix for cities
Planned redevelopment, as in Navi Mumbai's affordable housing and DLF's Moti Nagar projects, unlocks land value, builds scale and speeds up delivery.
Redevelopment's human cost
Stalled projects such as Kathputli colony show that unclear policies and developer financial trouble can leave residents stranded in transit camps for years.
Affordable vs premium housing
Redevelopment as a fix for cities
Market-led premium projects like One Midtown respond to demand and lift entire localities, with rapid sales and rising property values.
Redevelopment's human cost
Without municipal intervention, soaring land values push middle- and lower-middle classes to city peripheries, so affordable housing needs public support.
Role of government
Redevelopment as a fix for cities
Strong governance and unified land or lease frameworks, as in Mumbai's Bandra Bay project, make precinct-wide redevelopment feasible and attract private investment.
Redevelopment's human cost
Poor planning and unclear strategies can make projects a political hot potato, as seen with Kathputli colony.
Key facts
- Affordable housing target
- Over 55 million sq ft of PMAY-compatible housing in Navi Mumbai
- Sites identified
- 24 underused state-owned sites spanning 12 sq km across Navi Mumbai
- Affordable unit sizes
- 27-55 sq metres, across six housing models
- Housing prices
- Rs 25 lakh to Rs 97 lakh per unit
- CIDCO homes delivered
- Nearly 70,000 affordable houses in prime locations over seven years
- DLF Moti Nagar land
- 38-acre parcel bought from DCM Shriram and Lohia Group for Rs 1,675 crore in 2007
- One Midtown launch
- 913 units; Rs 1,500 crore of inventory sold within days of the 2022 launch
- Kathputli colony project
- Over 2,800 EWS units due by June 2026; residents in transit camps for more than 10 years
Quotes
Niranjan Hiranandani
Developer involved in the Bandra Bay project
“"The buildings that get older are a health risk. There is also a socio‑economic gap that gets developed because of the kind of building you’re living in. When all the buildings in a lane are redeveloped, the gentry gets normalised."”
businesstoday.in
“"Infrastructure has been the silent catalyst behind India’s housing boom. From metro rail to expressways, every new connectivity node has transformed micro‑markets into high‑demand residential hubs."”
businesstoday.in
Sources
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