Mumbai developers pour Rs 11,626 crore into BMC coffers in 2025-26, highest since Covid lockdown period

MUMBAI: City builders were the top revenue source for the BMC in 2025-26, paying premiums and development charges totalling Rs 11,626 crore. This revenue generated due to large-scale construction activity, mainly redevelopment of buildings, far surpasses BMC's highest-ever collection from property tax (Rs 7,610 crore) in the last financial year.

"The development plan department is the biggest revenue earner for the municipal corporation," said a civic official.

This is the highest ever money collected by the BMC from developers since the Covid-19 lockdown period. In October 2020, the BMC offered a 50% discount in payment of premiums for 15 months to boost the real estate industry. This bonanza helped the municipal corporation garner Rs 14,500 crore by the time the discount scheme ended in January 2022.

"The BMC's strong premium collections are closely linked to the availability and utilisation of additional floor space index (FSI) across key micro-markets. South Mumbai, where height restrictions are almost non-existent, and higher FSI can be effectively deployed, allow developers to build taller towers and unlock greater value," said Gulam Zia, international partner and senior ED, Knight Frank India.

He added, "This, in turn, results in higher premium payments, especially as these are linked to elevated Ready Reckoner rates in such prime areas. In contrast, markets constrained by aviation norms or height restrictions see relatively lower premium flows due to limited development potential. The current collections reflect this concentration of high-value activity, and while they may moderate with any slowdown, the scale achieved this year remains noteworthy."

According to data provided to TOI by BMC's development plan department, the belt between Bandra and Jogeshwari brought the largest revenue income from developers (Rs 2,451 crore) followed by south and central Mumbai (Colaba to Byculla — Rs 2,392 crore). The belt between Goregaon and Dahisar recorded a collection of Rs 1,811 crore. Among the municipal wards, K-West ward (Andheri West) contributed the largest share in Greater Mumbai (Rs 301 crore) followed by H-West ward (Bandra-Khar-Santacruz — Rs 283 crore).

According to data from Liases Foras, a non-broking real estate research firm, developer sales in Greater Mumbai touched Rs 1.32 lakh crore in 2025, registering an 8% growth over 2024.

"Data indicates that the Mumbai real estate market continues to maintain strong momentum, supported by healthy sales and increased development approvals, even as completion activity shows signs of moderation," said Pankaj Kapoor, MD, Liases Foras.