Adani Group Eyes Diwali Launch for First Phase of Dharavi Free-Sale Project

The Adani Group is likely to launch the first phase of the free-sale component of the Dharavi Redevelopment Project (DRP) around Diwali this year or early 2026, according to sources familiar with the matter. The group is currently ramping up land surveys, enumeration of residents, and obtaining necessary clearances.

The DRP is one of the largest urban renewal projects in Asia, facing the dual challenge of constructing new sale units alongside the in-situ rehabilitation of existing Dharavi residents—home to nearly a million people. This ambitious project includes not only redevelopment within Dharavi but also housing allocation across areas such as Kurla, Vikhroli, and Deonar.

Industry estimates suggest that approximately 60-70% of the free-sale inventory will target the affordable-to-mid segment. The initial phase is expected to be launched in the southern and eastern peripheries of Dharavi—near Sion and King's Circle—where market prices are relatively modest.

“The starting price points could be around Rs 27,000–Rs 28,000 per square foot, allowing developers to eventually push toward a long-term price of Rs 35,000 per square foot as they progress westwards towards the BKC-facing side,” said a Mumbai-based property consultant.

Overall, the project is expected to unlock nearly 140 million square feet of saleable space, which could generate revenues upwards of Rs 1 lakh crore at prevailing market rates. Given the scale, the group is expected to adopt a phased rollout strategy, releasing 10–15% of the inventory every year over the next 8–10 years.

“At a rough estimate, the Dharavi redevelopment project presents builders with about 140 million square feet of overall saleable area for the open market,” said Anuj Puri, Chairman of Anarock Group. “With current market rates hovering around Rs 8,500–Rs 9,800 per sq ft, we are looking at gross revenues north of Rs 1 lakh crore.”

Puri added that the project’s value could be further enhanced by Transferable Development Rights (TDR) and the monetisation of commercial developments, especially given Dharavi’s proximity to the upcoming metro and Mahim Junction railway station. Industry observers noted that height restrictions—due to the site’s location under the Mumbai airport’s flight path—will likely increase TDR volumes.

Moneycontrol has written to the Adani Group seeking comment on its plans for the free sale component at Dharavi, and the story will be updated if a response is received.

Navbharat Mega Developers (NMD), the Adani-led special purpose vehicle executing the project under Maharashtra's Slum Rehabilitation Authority, presented its updated master plan to the state government last week. The group estimates a project cost of Rs 95,000 crore, with roughly 118 acres of land remaining for free sale after accommodating resettlement housing, roads, schools, public spaces, and a transport hub.

As per the presentation, NMD has completed surveys in large parts of southern and eastern Dharavi. These include mapping of residential eligibility, businesses, religious sites, and utilities. The western portion remains partially surveyed, with pockets of resistance reported against door-to-door enumeration.

The company aims to determine the number of eligible and ineligible residents who will be allotted homes either within Dharavi or in alternative locations across Mumbai as per the presentation.