Mahalaxmi Railway Land Sets New Benchmark with ₹2,250 Crore RLDA Lease Auction
The Railway Land Development Authority (RLDA) has achieved a significant milestone in Mumbai's real estate sector by receiving its highest-ever bid of ₹2,250 crore for a 2.67-acre railway land parcel at Mahalaxmi in south Mumbai. This record-breaking auction sets a new benchmark for long-term lease auctions in the city.
The land parcel, measuring approximately 10,801 square metres, was offered on a revenue-share model with a lease period of 99 years. The reserve price for the plot was fixed at ₹993.30 crore. The site carries a permissible floor space index (FSI) of 4.05, making it highly attractive for development.
The auction drew participation from several major real estate developers, underscoring the sustained interest in strategically located urban land. Dineshchandra R Agrawal Infracon Pvt Ltd emerged as the highest bidder with an offer of ₹2,250 crore. Sobha Realty quoted ₹1,232 crore, while the Lodha Group submitted a bid of ₹1,161 crore. While the bids have been opened, the final selection of the developer will be made only after a detailed evaluation of the technical and financial feasibility of the proposal.
Located along the railway line near Mahalaxmi railway station, the land parcel enjoys excellent connectivity through Dr. E Moses Road and Shakti Mill Lane. It is also close to the Science Centre Metro Station and has easy access to key commercial and business districts in south and central Mumbai.
Real estate experts have cited the strong demand for premium urban parcels as a key factor in the bidding response. “This transaction underlines the willingness of developers to commit capital for well-located railway land with clear development norms and long lease tenure,” said a senior real estate consultant. Another industry analyst noted that the wide gap between the reserve price and the highest bid indicates strong confidence in Mumbai’s prime micro-markets.
“Mahalaxmi has limited land availability and strong connectivity. Projects here are viable for both residential and mixed-use development, which explains the aggressive bidding,” the analyst added.
Officials at the RLDA stated that the auction outcome reinforces their strategy of monetising railway land assets through transparent bidding and long-term leases, while maximising value from prime urban locations. This successful auction is expected to set a precedent for future land monetisation initiatives in the city, further boosting the real estate sector’s growth.
