Dharavi Redevelopment Project: Unlocking 140 Million Sq Ft for Free Sale and Transforming Mumbai's Largest Slum
The Dharavi Redevelopment Project in Mumbai is poised to unlock an impressive 140 million square feet of free sale area, potentially generating revenues between ₹1.2 lakh crore and ₹1.7 lakh crore for the joint venture between the Maharashtra state government and the Adani Group. This ambitious project, spearheaded by Navbharat Mega Developers Pvt Ltd (NMDPL), the special purpose vehicle formed for this redevelopment, plans to invest a total of ₹95,790 crore. This investment includes ₹23,800 crore allocated for the construction of 72,000 residential and commercial units to rehabilitate existing residents.
The remaining land, approximately 270 acres, will be available for free sale development. Property experts estimate profit margins between 18% and 30% from the free sale component, with significant revenue also expected from monetizing Transferable Development Rights (TDR) and commercial spaces. The project’s seven-year completion timeline is considered ambitious, requiring annual sales of 6.5 to 9 million square feet.
While the redevelopment aims to transform Dharavi into a modern urban space, concerns have been raised about the project’s execution and its impact on existing residents. Critics argue that the government could have undertaken the project directly to retain public benefits and revenues. Additionally, the Adani Group reportedly received 1,300 acres of land across the city as an incentive, prompting political opposition and concerns about foregone municipal revenues.
The Dharavi Redevelopment Project represents a significant opportunity to revamp one of Asia’s largest slum clusters, aiming to provide substantial commercial benefits through the free sale component while addressing the housing needs of existing residents. The project's success could set a precedent for urban transformation in other parts of the city and the country.
Despite the challenges, the project is seen as a crucial step in Mumbai’s urban development, offering a blend of modern infrastructure and improved living conditions for the residents of Dharavi. The joint venture between the government and the Adani Group is expected to bring in substantial investments, creating a ripple effect on the local economy and real estate market.
