Adani, Prestige Gain Ground in Mumbai Realty Market via Distressed Asset Buys

Non-Native Developers Tap into Stalled Projects to Gain Market Share

Mumbai’s real estate sector is witnessing a significant reshaping as non-native developers like Prestige Estates and Adani Realty strategically capitalize on distressed and stalled projects to gain a dominant foothold in India’s most expensive property market. Traditionally dominated by regional players, Mumbai’s landscape is now opening up to developers from other states, who are seizing opportunities presented by a spate of struggling mid-sized builders bogged down by soaring land prices, regulatory delays, and inconsistent economic conditions. With a growing number of smaller players unable to complete their projects, prominent national-level developers are transforming abandoned or delayed ventures into profitable ventures, often avoiding the risks and procedural delays associated with greenfield development.

Highlights:

• Prestige Estates and Adani Realty are leveraging distressed real estate for Mumbai market expansion.

• Skyrocketing land costs and stalled projects have created entry points for deep-pocketed developers.

• Non-native players are reviving incomplete projects to strengthen their market presence in MMR.

Prestige Estates Acquires Key Land Parcels from Stressed Players

Bengaluru-headquartered Prestige Estates Projects has notably increased its presence in Mumbai by acquiring high-value land parcels from troubled realty firms. Among its high-profile purchases are key plots formerly owned by DB Realty (now Valor Estates) in locations such as Mahalaxmi, Marine Lines, and Bandra Kurla Complex (BKC). These sites are now being repositioned into luxury residential and premium commercial projects, enabling Prestige to offer upscale developments in some of Mumbai’s most in-demand locales. With these acquisitions, Prestige is efficiently converting the value locked in idle land into revenue-generating real estate, while avoiding the bureaucratic challenges of acquiring new permissions from scratch.

Highlights:

• Prestige Estates acquired plots in Mahalaxmi, Marine Lines, and BKC from DB Realty.

• Focus is on luxury and premium segment development to match central Mumbai’s demographic.

• Strategic land buys allow faster turnaround than starting greenfield projects.

Adani Realty Eyes Major Government-Led Redevelopments

Adani Realty, the infrastructure conglomerate’s real estate arm, is increasingly positioning itself as a formidable player in long-stalled urban redevelopment projects, particularly those initiated by the Slum Rehabilitation Authority (SRA) and the Maharashtra Housing and Area Development Authority (MHADA). Its interest spans across massive urban regeneration efforts, including the Dharavi redevelopment and Motilal Nagar redevelopment in Goregaon (West). These projects have historically been mired in delays due to legal, financial, and resettlement complexities. Adani’s deep financial reserves and sophisticated regulatory navigation skills are giving it an edge over other bidders, especially in projects requiring high upfront investment and multi-agency coordination.

Highlights:

• Adani Realty is targeting SRA and MHADA redevelopment projects.

• Key focus includes Dharavi and Motilal Nagar urban transformation.

• Adani’s capital strength and regulatory acumen make it ideal for complex, long-pending schemes.

Lodha Group Navigates NCLT to Acquire Iconic Centaur Hotel

Macrotech Developers, better known as the Lodha Group, has also entered the distressed assets space by winning a corporate insolvency bid for the Juhu-based Centaur Hotel, a formerly iconic property whose owners were pulled into insolvency proceedings under the NCLT. The resolution plan, which involved creditors taking a significant haircut, allowed Lodha to acquire the asset for Rs 890 crore, against admitted claims worth Rs 2,500 crore. Lodha is now constructing a high-end residential project on the property. This move aligns with the broader trend of repurposing distressed commercial or hospitality properties into luxury housing, a segment that remains resilient despite broader macroeconomic challenges.

Highlights:

• Lodha Group acquired Centaur Hotel via a resolution process through NCLT.

• Deal involved a Rs 2,500 crore claim settled for Rs 890 crore.

• Lodha is converting the site into a luxury residential project.

Market Dynamics Driving Interest in Distressed Assets

Industry experts say that the recent wave of interest in distressed or delayed projects is driven by multiple converging trends. The changing attitudes of property owners, new generations of sellers and bankers, and a more professionalized approach by corporate real estate firms are facilitating smoother negotiations and faster closures. Developers with the ability to execute complex and previously stalled developments are gaining trust from homeowners, lenders, and even government bodies. The rise in experienced government liaison professionals and business development managers joining large developers like Adani, Prestige, and Lodha has further enabled these firms to overcome project-level bottlenecks that would previously derail such initiatives.

Highlights:

• New-generation developers and bankers are open to partnerships with corporate builders.

• Large firms have recruited seasoned execution and government liaison experts.

• Developers now prefer acquiring stalled or IBC-routed projects over starting from scratch.

Mumbai’s Redevelopment Wave: Opportunities and Challenges

Despite the boom in redevelopment activity, experts caution that several micro-markets in Mumbai remain non-viable due to liquidity constraints or complex stakeholder issues. Yet, developers specializing in distressed asset turnarounds continue to seek opportunities. In one example, Kochra Realty, a family-run company, took over a 600-unit stalled redevelopment project in Dahisar, originally launched by Ashapura Housing. This project had been in limbo for years, leaving hundreds of homeowners in the lurch. With renewed developer interest and backing, such projects are slowly being delivered, even as most of the new supply continues to target premium buyers.

Highlights:

• Kochra Realty revived a 600-unit stalled project in Dahisar in 2023.

• Redevelopment is concentrated in the premium segment, despite wider housing demand.

• Several non-viable projects still await investment due to poor margins or legal deadlocks.