South realtors like Prestige Group, Puravankara and Sobha eyeing Mumbai property market

BENGALURU/MUMBAI: A sustained upswing in the property market and appetite for high return on investments are pushing realty developers from south India to move to Mumbai.

Over the last two years, some of the key builders like Prestige Group, Puravankara and Sobha have either acquired land or entered into redevelopment agreements in the city to encash on the thriving real estate market.

This influx of developers is also a sign of confidence in Mumbai's continued growth, despite its notoriously high land prices and regulatory complexities.


"Buoyed by the realty bull run, enough opportunities have emerged for more players to participate here. During the last downturn many developers have fallen by the wayside. Infrastructure projects have added to the geographical expanse of Mumbai. These factors are contributing to an increase in opportunities for everyone," said Gulam Zia, senior executive director, Knight Frank India.

Bengaluru-based Prestige Group forayed into Mumbai's residential market in early 2022 with an upscale development in the heart of South Mumbai.

"The move into Mumbai represents a strategic diversification of the portfolio. Considering the incredible response that we have received in Mumbai in the last 3 years, we are encouraged to deliver the Falcon gold standard of living ," said Tariq Ahmed, CEO, West India, Prestige Group. "The group will also be launching another uber luxury development in Worli in early 2025," he said.

Another Bengaluru-based developer, Sobha is looking at options like outright purchases, joint development with land owners and redevelopment of existing housing societies.

"Mumbai is one of the key markets for us and we are targeting a small percentage of them as potential buyers. The potential revenue in Mumbai is different, which alone could generate around ?10,000 crore of sales over the next few years," said Ravi Menon, chairman of Sobha Group in May.

The firm has identified its first residential project on a 300,000 square feet plot in Mumbai, to be launched by the middle of next year. Another developer Puravankara has a total of 1.57 million sq ft with 1.43 million sq ft developable area under construction and has bagged key projects in Mumbai, with redevelopment projects in Lokhandwala, Pali Hill, Bandra and Breach Candy and land acquisition in Thane.

"In the coming years, we expect 49% of our business to come from Mumbai and Pune, and we expect to take at least two more projects to market in Thane and Lokhandwala by the end of this fiscal," said Abhishek Kapoor, group CEO of Puravankara.