Mumbai: In Mumbai’s property market, Bandra and Khar have always been among the most sought-after locations. However, in recent years, the Linking Road area has emerged as a new real estate hotspot. Gone are the days when selling old flats was a struggle — today, builders are offering record-breaking prices for these aging properties.
Redevelopment: The Key Driver of Growth
The primary reason behind this surge is redevelopment. In upscale neighborhoods like Bandra and Khar, vacant greenfield land is almost nonexistent. As a result, developers are targeting old cooperative housing societies that were built with low Floor Space Index (FSI). FSI determines how much construction can be done relative to the plot’s size. The Maharashtra government’s relaxation in FSI norms and permission to purchase additional FSI by paying a premium have made redevelopment projects highly profitable for builders.
Why Builders Are Offering Premiums for Old Buildings
The Linking Road stretch is considered a micro-market catering to Bollywood celebrities, entrepreneurs, and high-net-worth individuals. Demand for housing in this prestigious area remains extremely strong, even at premium prices. Builders are willing to offer larger, upgraded apartments to existing residents for free while still retaining enough saleable inventory to generate substantial profits.
With luxury apartment prices exceeding Rs 1 lakh per sq ft, developers can easily absorb the high acquisition costs of older properties. The high resale value ensures that redevelopment remains a lucrative investment, allowing builders to outbid competitors and secure prime locations.
Location Advantage and Connectivity
Linking Road enjoys unmatched connectivity, luxury retail presence, and social infrastructure. From designer boutiques and upscale restaurants to proximity with key commercial districts, the area offers everything that premium buyers seek. This 'prime location advantage' justifies the elevated property rates and explains why developers are racing to acquire older societies for redevelopment.
As a result, the Linking Road belt continues to witness Mumbai’s most aggressive property deals, transforming aging residential clusters into luxury high-rises and reshaping the city’s urban landscape.
