Mumbai: Mumbai is expected to see a significant oversupply of residential real estate, driven by regulatory changes and a surge in redevelopment activity across the city.Market watchers point to the increase in permissible Floor Space Index (FSI) and the relaxation of height restrictions as key factors expanding potential buildable area. Large-scale redevelopment initiatives being undertaken or facilitated by govt and civic bodies are also expected to add substantial inventory. These include projects linked to MHADA, BMC, the Dharavi redevelopment, the BDD Chawl redevelopment in South Mumbai and multiple schemes under Slum Rehabilitation Authority (SRA).Additional supply is anticipated even in dense neighbourhoods with narrow internal lanes and smaller by-lanes. Developers and consultants note that considerable FSI is being sanctioned under Development Control and Promotion Regulations (DCPR) 2034, including Regulations 33(20)(B) and 33(11). The approvals under these provisions are contributing to an expanding project pipeline beyond traditional large-plot developments.Market observers also cite a recent wave of environmental clearances granted to several projects. Many of these developments are expected to be launched in a clustered window around Diwali, raising the likelihood of multiple project launches entering the market at the same time.Analysts say the timing could intensify competition among developers as buyers are presented with a larger set of choices within the same launch period. “The increased supply and simultaneous launches are expected to put pressure on sales velocity, pricing discipline, and overall market absorption in the months following the festive season,” said a property consultant.
