Pranav Constructions

MMR combines high absolute sales volumes with sustained launch share across India's major cities. Demand has remained strongest in aspirational and premium categories, while MMR continued to lead new launches despite some moderation in CY25.

The key drivers are:

• Launch share: MMR represented 26% of top-8-city residential launches in Q1 CY26 and averaged about 27% between CY19 and Q1 CY26

• Absorption: Q1 CY26 absorption was about 23,185 units in MMR, ahead of Pune at 12,710, Bengaluru at 13,090 and Hyderabad at 9,540 units

• Supply depth: MMR recorded approximately 11,42,446 residential units of supply between CY15 and Q1 CY26; CY25 supply was about 88,200 units and Q1 CY26 added 25,500 units

• Pricing: Western Suburbs average capital values reached about INR 34,700 per sq ft on carpet area in Q1 CY26, versus about INR 31,920 in CY25

Mumbai's limited availability of clear-title vacant land makes redevelopment a structurally important route for creating new housing supply. Society-led redevelopment can also reduce upfront land acquisition cost for developers while providing existing residents with upgraded housing and amenities.

The key drivers:

• Redevelopment share: Of 1,68,696 under-construction units launched in MCGM between CY17 and Q1 CY26, redevelopment represented 62% or 1,04,859 units versus 38% greenfield supply

• MCGM category dominance: MCGM-redevelopment projects represented 68,888 units, or 66% of redevelopment supply, and 21,795 sold units, or 64% of redevelopment absorption

• Western Suburbs concentration: Western Suburbs accounted for 44% of MCGM redevelopment supply, with 46,218 units, and the highest share of sold units

• Recent acceleration: Western Suburbs MCGM-redevelopment supply reached about 30,437 units from CY17-Q1 CY26; 94% was launched from CY21 onward, while Q1 CY26 alone recorded about 4,546 launches

The Western Suburbs remain a broad-based homebuyer market rather than a purely luxury market. Economical, mid-and-mass and aspirational housing dominates launches, while property values have risen with better infrastructure, amenity quality and constrained land supply.

The key drivers are:

• Core segment share: On average, 97.8% of Western Suburbs units launched between CY19 and Q1 CY26 were in economical, mid-and-mass and aspirational categories

• Q1 CY26 mix: Economical housing contributed about 58% of Q1 CY26 Western Suburbs launches, followed by mid-and-mass at 23% and aspirational at 14%

• Western Suburbs values: Average residential capital value increased from about INR 24,410 per sq ft in CY19 to INR 34,700 per sq ft in Q1 CY26

• Relative affordability: Q1 CY26 Western Suburbs values of INR 34,700 per sq ft remained materially below South Mumbai at INR 69,185, Central Mumbai at INR 63,630 and Western Prime at INR 59,030.

Residential redevelopment combines cyclical housing demand with execution and regulatory complexity. In Mumbai, project economics depend on land/FSI rules, rehabilitation commitments, approval timing, construction cost and sale velocity. This creates higher coordination risk than a straightforward completed-land development model.

The key risks are:

• Higher mortgage rates can reduce buyer affordability and elongate sales cycles, particularly in economical and mid and-mass categories

• Redevelopment economics depend on DCPR provisions, FSI/TDR availability and multiple municipal approvals; rule changes or approval delays can alter feasibility and timing

• Steel, cement, labour and contractor cost inflation can compress project margins because rehabilitation obligations and society commitments are typically fixed before completion

• Redevelopment requires consent, vacation, transit arrangements, rehabilitation and possession for existing members; disputes can delay commencement or completion

• Western Suburbs launch activity has accelerated sharply; weaker absorption or excessive competing supply can increase inventory and marketing costs

• Legacy buildings may involve title issues, occupier claims and documentation complexity, increasing legal diligence and execution risk

Policy support is meaningful but primarily enables redevelopment and urban infrastructure rather than guaranteeing project profitability. DCPR 2034 provides redevelopment-specific incentive frameworks, while housing and transport programmes can improve affordability and urban accessibility.

The key policies are:

• DCPR 33(7B): For qualifying housing societies generally 30 years or older, the framework provides additional FSI of 15% of existing built-up area or 10 sq m per tenement, whichever is higher, subject to conditions

• DCPR 33(9): Cluster redevelopment permits schemes over minimum areas of 4,000 sq m in Island City and 6,000 sq m in suburbs/extended suburbs, with FSI up to 4.0 subject to prescribed conditions

• PMAY: FY27 allocation across PMAY urban and rural components is INR 73,541.7 Cr, including INR 18,625.0 Cr for PMAY Urban / Urban 2.0; the Interest Subsidy Scheme received INR 3,000.0 Cr.

• AMRUT / urban infrastructure: FY27 AMRUT allocation is INR 8,000.0 Cr; Maharashtra has been allocated INR 9,310.0 Cr of central assistance under AMRUT 2.0 across approved projects

• RERA framework: RERA supports project registration, escrow discipline and customer disclosure, improving formalisation while increasing compliance requirements for developers