Inherited a 1-acre Plot in Mumbai? What You Need to Know Before Starting an SRA Project
An individual earning ₹24 lakh annually has inherited a 1-acre plot in Mumbai and plans to undertake an SRA project. Reddit users advise caution, suggesting he sell the land instead.
Mumbai Real EstateSra ProjectReal Estate DevelopmentSlum RehabilitationInvestmentReal Estate MumbaiSep 13, 2025
A Slum Rehabilitation Project (SRA) in Mumbai is a government-led scheme aimed at redeveloping slum areas. Under this scheme, developers provide free, legal housing to eligible slum dwellers. In return, they gain rights to use the freed-up land for saleable projects, balancing social welfare with real estate development incentives.
Under the SRA scheme, rehabilitated slum dwellers receive a 1 BHK apartment of around 330 sq ft. During the construction of these rehabilitation apartments, the slums are demolished, and the displaced slum dwellers are provided with rent for the interim period.
The individual posted on Reddit, expressing his ambition: “I earn ₹24 LPA, but my dream is bigger, not just to own a home, but to build dream homes for others in Mumbai, India’s costliest real estate market. The challenge: With my current salary, I don’t have the financial bandwidth to fund such a project, and I have zero prior experience in real estate development.”
He further stated, “It is an SRA redevelopment project, and I have 100 tenants to rehabilitate there. How can I raise funding for such a project? Any guidance, resources, or advice would be greatly appreciated.”
While his dream is still in its early stages, the post has sparked online discussions about the challenges and opportunities in Mumbai’s redevelopment market. Some users advised him to sell the land instead of attempting self-redevelopment.
“Given that you are working on a salary of ₹24 lakh, I wouldn’t even bother with it. Before any bank or investor will even consider funding you, you’d need to invest at least ₹2–4 crore into the project, if not more,” one user commented on Reddit.
Another user added, “The best option is to sell, honestly.”
One user, who has extensive experience in real estate development, posted, “As someone who has done 100+ feasibilities and has worked with my family for seven years in Mumbai doing development, SRA is potentially the most cumbersome type of development to start your development career with, but it’s doable. It's doable with the caveat that you face hell and realise that in two years, you should have given it to someone with the muscle and cash to develop.”
“You don’t get funding for initial investment until approvals are in place, so forget about funding from banks / NBFCs until you get to construction. Private guys will invest or lend you money, but then the risk is higher, and you also get crazy interest rates. Someone like you will get 24-35% a year. And that, too, would be very hard. I would barely trust a developer who has done two projects. You aren’t even in development yet,” the user said.
The user added that after initial finance and approvals, one will need to get a sales team, heat the broker market up, hire a construction head, handle procurements, MEP, legal, etc. “And if they know that you do not know real estate, they will take you for a ride.”
A senior official of a listed real estate firm in Mumbai, speaking on condition of anonymity, stated that an individual should not take up the project unless he or she has ₹5 crore. “Since this is an SRA project with 100 residents, he needs at least 51% consent to be appointed developer before applying for LOI, though closer to 100% is safer to avoid disputes. No funding is available at this stage, so he must use his own equity. Building tenant relationships for consent may take 1–2 years, often requiring social or financial support. Once the LOI is secured, NBFCs or AIFs might fund the project, but he must still deposit two years’ rent of about ₹5 crore upfront, meaning he should have equity of at least that amount.”
Legal experts also advise against developing the project independently. “In this case, the landlord appears to be a corporate professional earning ₹24 lakh per annum. That income alone is certainly insufficient to fund a redevelopment project, unless supported by significant personal savings or equity. Beyond finances, the skill set required to manage a slum rehabilitation project is highly specialised and extremely demanding, particularly for someone without prior real estate experience. To put it simply, I would not recommend that the landlord pursue this project independently,” said Sunil M. Kewalramani, a Mumbai-based lawyer.
Frequently Asked Questions
What is an SRA project in Mumbai?
An SRA project, or Slum Rehabilitation Authority project, is a government-led scheme in Mumbai that redevelops slum areas by providing free, legal housing to eligible slum dwellers. In return, developers gain rights to use the freed-up land for saleable projects.
What are the initial requirements to start an SRA project?
To start an SRA project, you need at least 51% consent from the slum dwellers to be appointed as the developer. You also need to have significant personal equity, typically around ₹5 crore, to cover initial costs and deposits.
Can banks provide funding for an SRA project?
Banks and NBFCs typically do not provide funding until all necessary approvals are in place and construction has begun. Private investors may provide funding, but with higher interest rates and greater risk.
What are the main risks of undertaking an SRA project?
The main risks include high initial investment, complex regulatory and bureaucratic processes, and the specialized skills required for project management. There is also the risk of disputes with slum dwellers and other stakeholders.
What advice do experts give to individuals considering an SRA project?
Experts generally advise against undertaking an SRA project independently, especially for those without prior real estate experience. They suggest selling the land or partnering with experienced developers to mitigate risks.
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