Real estate developer Runwal Group has entered Mumbai’s redevelopment and slum rehabilitation segment, committing an investment of over ₹1,000 crore as part of a new growth strategy aimed at long-term portfolio expansion. The move reflects the increasing importance of redevelopment-led projects in land-constrained Mumbai, where limited availability of greenfield parcels has made redevelopment and rehabilitation the primary engines of new supply.

The company has already acquired a large slum rehabilitation project in Wadala and redevelopment rights for a housing society in Andheri, marking the formal launch of this new business vertical, according to a report by Economic Times.

“It’s a strategic decision for future growth as real estate projects involving redevelopment and rehabilitation are the mainstay of Mumbai’s property market given that the land-starved city has few vacant land parcels,” Saurabh Runwal, associate director, Runwal Group, said.

Saurabh, an engineering graduate from Columbia University, will be spearheading the new business vertical for the Runwal Group.

According to the third generation Runwal family member, the proposed investment in this new business segment is estimated to generate revenues worth Rs 2,500 crore for the company.

In addition to acquisition of two key projects in Mumbai’s Wadala and Andheri locality from existing real estate developers, the company is in advanced discussions for redevelopment of more than six housing societies across western suburbs of Mumbai and Thane.

Apart from Mumbai, the company is looking to target other micro markets in the Mumbai Metropolitan Region including Thane, Navi Mumbai and extended western suburbs for such acquisition of projects and redevelopment rights.

The ongoing consolidation in the real estate sector has accelerated due to the Covid-19 pandemic. Large established real estate developers have gained more market share in terms of sales and liquidity as homebuyers are relying more on developers’ execution track record and sound financial position to take the project to conclusion.