Maharashtra Government Plans to Monetize Prime Worli Seafront Plot in Mumbai
The Maharashtra government has set in motion plans to monetize the 6.40-hectare site of the closed Worli Dairy in Mumbai’s prime seafront belt by reclassifying its land reservation from residential to commercial use. The state’s Urban Development Department (UDD) issued a notification on September 25, intending to change the reservation of the plot, as reported by Hindustan Times.
The state government will also seek objections and suggestions before changing the reservation in the Development Control and Promotional Regulations (DCPR) 2034. According to the report, the plot, apart from housing the now-defunct government-run dairy, also hosts the office of the dairy development commissioner and some residential quarters. It was classified as a “dairy” in a “residential zone” in the 1991 Development Plan.
The dairy has been shuttered for over a decade, leaving the property largely dormant. According to a February 2022 government notification, the state government had planned to convert it into a marine research institute, aquarium, exhibition center, and government offices. However, in January 2024, the Mumbai Metropolitan Region Development Authority (MMRDA) sought control of the site to redevelop it as a mixed-use node to generate employment and requested to be designated as the Special Planning Authority (SPA) for the land.
In April 2025, Maharashtra Chief Minister Devendra Fadnavis approved that MMRDA would prepare draft planning proposals for the former dairy plot. Now, with the latest notification, the government has cleared the way for the land to be leased to private entities once the formalities are completed. This would effectively allow commercial development to sprout in one of Mumbai’s most coveted stretches if re-zoning is approved, according to the report.
Worli is one of South Mumbai’s most sought-after luxury residential markets, known for its premium high-rises and sea-facing apartments. The area has been in the news for several high-value transactions, with some properties fetching close to ₹3 lakh per sq ft. For instance, Leena Gandhi Tewari, chairperson of pharmaceutical giant USV, purchased two ultra-luxury, sea-facing duplex apartments in the upscale Worli area for a staggering ₹639 crore. Including taxes, the total transaction value rose to ₹703 crore, setting a new national record.
The per square foot rate of nearly ₹3 lakh makes it the most expensive residential property deal ever recorded in India and highlights the continued surge in the ultra-luxury real estate market in the financial capital. Uday Kotak, founder of Kotak Mahindra Bank, and his family were also in the news in May 2025 for purchasing an entire building of 22 flats in Mumbai’s Worli for over ₹400 crore. According to property registration documents, one of the transactions in these 22 flats was recorded at a maximum price of ₹2.89 lakh per sq ft.
This move by the Maharashtra government to reclassify and monetize the Worli Dairy plot is expected to attract significant investments and boost the local economy. The potential for commercial development in this prime location could lead to the creation of new business opportunities and enhance the overall value of the Worli real estate market.
