Real Estate Maharashtra
Dharavi Redevelopment Project: 5 Key Facts and Its Impact on Mumbai's Real Estate Market
By GeoSquare News Desk · Published 2024-07-03
Mumbai's Dharavi is one of Asia's largest slum housing clusters, with a population of around one million people. The Maharashtra government has made several attempts to redevelop Dharavi over the past 17 years, but all have failed. However, in November 2022, the Adani Group won the bid to redevelop the slum cluster with an initial investment of ₹5069 crore. According to real estate developers and consultants, the Dharavi redevelopment and rehabilitation project will not only mark the beginning of a slum-free Mumbai but will also have a significant impact on Mumbai's real estate market, especially in Central Mumbai. Here are five key facts about the project
1. Dharavi is a slum cluster spread across 600 acres, housing several small-scale, unorganized industries manufacturing medicines, leather, footwear, and clothes. It is located close to the Bandra Kurla Complex (BKC), India's costliest commercial office complex.
2. The Adani Group will be redeveloping the cluster and rehabilitating the dwellers in Dharavi. The project completion timeline is 17 years, with the rehabilitation portion expected to be completed within seven years after the approvals are in place.
3. The current status of the project is that the Adani Group is carrying out a survey of the slum cluster to determine which slum dwellers are eligible to receive 350 sq ft homes. Dharavi Redevelopment Project Pvt Ltd (DRPPL), a joint venture between the government of Maharashtra and the Adani Group, is also preparing a master plan for the project.
4. The redevelopment and rehabilitation of Dharavi will not only provide slum dwellers with new homes but also rehabilitate industrial and commercial units within Dharavi. Eligible industrial and commercial units will enjoy benefits such as a refund of the state Goods and Services Tax (SGST).
5. The project is expected to have a significant impact on Mumbai's real estate market, especially in Central Mumbai, where launches and sales are currently subdued due to the non-availability of land for executing new projects. According to experts, the Dharavi redevelopment project will be one of the biggest factors to impact Mumbai's real estate market in the coming years.
Information
The Adani Group is a multinational conglomerate founded by Gautam Adani. It is one of India's largest business groups, with interests in port operations, coal mining, and renewable energy, among others.
Dharavi Redevelopment Project Pvt Ltd (DRPPL) is a joint venture between the government of Maharashtra and the Adani Group, established to redevelop and rehabilitate the Dharavi slum cluster.