Dharavi’s Transformation into a Smart City: A Model for Inclusive Urban Renewal

Dharavi, one of the most densely populated urban settlements in Mumbai, is set for a major transformation under a massive redevelopment project that aims to create a smart city, modern transport hub, and improved public spaces.

According to an HSBC report, the Dharavi Redevelopment Project is one of the largest urban renewal initiatives in Asia and is expected to reshape the lives of more than one million residents.

The project was discussed during the session 'Transforming Dharavi: A Model for Inclusive Urban Renewal' at the AdAnnual Conference 2026, where Pranav Adani and Navbharat Mega Developers CEO Anil Sardana shared updates on the ambitious plan. HSBC states that the project involves the rehabilitation of around 125,000 homes and the redevelopment of one of Mumbai's most well-known neighborhoods.

Dharavi, spread across nearly 600 acres in central Mumbai, is home to more than one million people. The area is also a major economic hub, housing thousands of small businesses involved in pottery, food processing, leather manufacturing, and plastic recycling. For decades, Dharavi has been recognized for its entrepreneurial spirit despite facing challenges related to overcrowding and infrastructure.

The redevelopment project spans approximately 225 million square feet. This includes 95 million square feet for rehabilitation and 130 million square feet for free-sale development. The project is being carried out through a public-private partnership between the Maharashtra government and the Adani Group. The Maharashtra government holds a 20 percent stake, while the Adani Group owns the remaining 80 percent.

A major part of the redevelopment focuses on housing. According to HSBC, more than 125,000 housing units will be built for residents. Around half of these homes will be constructed within Dharavi itself, while the remaining units will be developed across six locations in the Mumbai Metropolitan Region. The goal is to provide safer and better-quality housing while improving overall living standards.

The project goes beyond housing and includes major infrastructure upgrades. Plans include a multi-modal transport hub, three metro stations, bus depots, schools, healthcare facilities, sports centers, green spaces, and pedestrian walkways. According to HSBC, the aim is to create a modern urban ecosystem that improves both connectivity and quality of life.

HSBC highlighted the project's commercial potential as well. The redevelopment includes 130 million square feet of free-sale area located around five kilometers from Mumbai's central business district, Bandra Kurla Complex (BKC). This makes it one of the largest real estate opportunities currently available in Mumbai.

The redevelopment project also includes several environmental initiatives designed to improve the surrounding area. These plans include cleaning the Mithi River, cleaning the Deonar dumping ground, developing a six-kilometer mangrove creek, and creating a Marine Drive-style promenade along the Mithi River. The project aims to combine urban development with environmental restoration.

According to HSBC, the rehabilitation phase is expected to take seven to eight years. The first building on Indian Railways land is expected to be handed over in December 2026. Construction of around 30,000 housing units is expected to be underway during FY27. The company has also committed to providing 10 years of operations and maintenance support for rehabilitated housing units.

HSBC believes the Dharavi Redevelopment Project is far more than a housing initiative. The report noted that the project combines housing rehabilitation, infrastructure development, environmental improvement, and commercial growth on an unprecedented scale. If successful, it could become a model for inclusive urban renewal in India and one of the country's most ambitious city transformation projects. For millions of residents, the redevelopment represents an opportunity for improved housing, better infrastructure, and a more sustainable urban future.