Hyderabad’s Ramky Estates Joins Mumbai’s Booming Redevelopment Market

Hyderabad's Ramky Estates Enters Mumbai's Redevelopment Market

The Mumbai real estate sector has witnessed a notable recovery since the pandemic, sparking a surge in redevelopment projects across the city. Traditionally dominated by local developers, the market is now attracting several prominent builders from outside Mumbai, enticed by the city’s lucrative redevelopment opportunities.

Ramky Estates & Farms' Mumbai Debut

One of the newest entrants is Hyderabad-based Ramky Estates & Farms, which has recently acquired development rights for a 1.5-acre slum rehabilitation project in Chembur. This project marks Ramky’s first venture into Mumbai, reflecting the company’s expansion into India’s financial capital.

The developer is reportedly working on close to 5 lakh square feet on the 1.5-acre land parcel occupied by slum structures. Media reports estimate the project's revenue potential to be around ₹500 crore.

Growing Trend of External Developers in Mumbai

Over the past decade, at least half a dozen developers from Mumbai and Bengaluru have extended their reach beyond their home markets. Bengaluru-based firms such as Prestige Group and Puravankara, as well as Delhi-based DLF, have either entered or announced plans to enter Mumbai’s real estate market.

Conversely, Mumbai-based realtors like Lodha Group have expanded into cities like Bengaluru and Pune, while Godrej Properties has diversified into multiple cities including Bengaluru, Pune, Nagpur, Indore, Delhi NCR, Ahmedabad, and Hyderabad, aiming to establish a pan-India presence.

Why Mumbai Attracts Outside Developers

Developers from cities such as Bengaluru, Delhi, and Hyderabad view Mumbai as both a challenging and rewarding market. While their home cities may offer limited growth due to saturation or slower dynamics, Mumbai provides vast potential, despite its complexities.

An anonymous Mumbai-based developer highlighted that profit margins in Mumbai are significantly higher, with margins of around ₹30,000 per square foot on redevelopment projects. The developer explained that achieving similar revenue in other Indian cities would require constructing 15 to 25 times the built-up area compared to Mumbai, which limits local developers' urgency to expand elsewhere except for diversification purposes.

Industry Perspectives on Mumbai’s Market Size and Opportunity

Rajat Rastogi, CEO – West and Commercial Assets at Bengaluru-based Puravankara Limited, noted that the Mumbai Metropolitan Region (MMR) is the largest real estate market in India, comparable in scale to the entire South Indian market. He added that MMR caters to a wide range of buyer segments, from ultra-luxury residences to affordable housing, making it a natural choice for expansion.

While Mumbai has historically seen fewer new entrants compared to markets like Delhi NCR, DLF is expected to make its Mumbai debut soon. DLF’s joint managing director, Aakash Ohri, described their approach to launching in Mumbai as "careful, cautious, and confident," emphasizing prudence over overconfidence.

Optimism for Growth Amid a Favorable Cycle

Industry leaders believe that current market conditions provide a favorable ecosystem for stable players to expand into new geographies. Ohri remarked in March 2025 that the real estate cycle in India is relatively young, with an anticipated growth period over the next five years, contingent on various factors.

Meanwhile, Abhishek Lodha, Managing Director and CEO of Macrotech Developers (Lodha Group), confirmed the successful completion of their pilot phase in Bengaluru. The company aims to capture a 15% market share in the city’s IT sector by the end of the decade, having focused on building a strong local team and adapting to the market’s operational nuances during the initial years.

Disclaimer: The information contained in this report is based on publicly available sources and statements from industry representatives. It is intended for informational purposes only and does not constitute investment advice or a solicitation to invest in any project or company.