Mumbai Unlocks 18% of Real Estate for Development and Slum Rehabilitation

Mumbai is witnessing a massive urban renewal as the government opens up 18% of the city's real estate for development and slum rehabilitation. This initiative, spearheaded by various government bodies, aims to transform the city and provide affordable housing.

Real EstateSlum RehabilitationUrban RenewalAffordable HousingMhadaReal Estate NewsSep 11, 2025

Mumbai Unlocks 18% of Real Estate for Development and Slum Rehabilitation

Real Estate News:Mumbai, the financial capital of India, is undergoing a significant transformation as the government opens up vast tracts of land for development and slum rehabilitation. The move is part of a broader urban renewal plan that aims to make Mumbai slum-free and provide affordable housing to its residents.

A few months before the assembly elections in November last year, Eknath Shinde, then the chief minister of Maharashtra, announced at an election rally that the Mahayuti government would make Mumbai slum-free. The state had already cleared a proposal to redevelop slum settlements on 31.82 hectares in Mata Ramabai Ambedkar Nagar and Kamraj Nagar in Ghatkopar East. Shinde described this as “just a trailer” of what lay in store.

While the promise of a slum-free Mumbai has been a recurring theme in political rhetoric, this time it seems to be more than just a campaign slogan. The scale of slum rehabilitation in the last few months has been sweeping, with the state throwing open vast tracts of land for development and redevelopment. Mumbai has 34,000 acres of habitable land, which is 23% of the city’s total area. Of this habitable area, 17.71%, or 6,021.50 acres, has been unlocked for development by the central and state governments.

Around one-third of this 17.71%, or 6.08%, or 2,068.59 acres, will be redeveloped through Slum Rehabilitation Authority (SRA) schemes in collaboration with seven government agencies and the Adani Group, which is leading the massive Dharavi Redevelopment Project. The Maharashtra Housing and Area Development Authority (Mhada) has also opened up 690.81 acres of its land through various measures, including cluster redevelopment of areas such as Kamathipura in South Mumbai and Motilal Nagar in the suburbs.

The land being redeveloped by SRA and Mhada together accounts for almost half the government-owned land opened up for development in Mumbai – 2,759.4 acres of 6,021.50 acres earmarked for rehousing slum-dwellers and for affordable housing. As many as eight government bodies have opened up huge swathes for development and redevelopment, from the Ganpat Patil Nagar slums in Dahisar to land owned by the Mumbai Port Authority (MbPA) on the eastern waterfront, the Dharavi precinct, and the 19,000-odd crumbling cessed buildings of South Mumbai.

These bodies include SRA, Mhada, MMRDA, MbPA, Maharashtra State Road Development Corporation (MSRDC), Brihanmumbai Electric Supply & Transport undertaking (BEST), and the Brihanmumbai Municipal Corporation (BMC). The push towards making Mumbai slum-free has continued even though Shinde is no longer chief minister. New policies and amendments to existing ones have further accelerated the process.

However, urban planner Chandrashekhar Prabhu, a former Mhada president, cautions against the potential pitfalls of such large-scale land unlocking. “Such large-scale unlocking of prime government land and indiscriminate increase in FSI will encourage corruption and also result in gentrification, as the cheapest apartments in the remotest corners will be sold for nothing less than ₹2 crore. In the island city, no decent accommodation is available for less than ₹4 crore,” he said.

According to Census 2011, Mumbai’s population stood at 12.4 million, with 41.30%, or 5.1 million, living in slums under blue tarpaulin-covered roofs. Now, under the biggest-ever coordinated push for rehabilitation, the SRA, in collaboration with seven government agencies, is overseeing the redevelopment of slums spread across 2,068 acres. Through more than 200 projects, the goal is to rehouse 2.07 lakh slum-dwellers squatting on 859.789 acres of land.

The new structure of slum redevelopment is seeing proactive government support to SRA projects, roping in government and civic agencies to expedite issues such as encroachment disputes, delayed permissions, and lack of clarity in land titles. Rajiv Agrawal, promoter and co-founder of Saarathi Group, involved in slum redevelopment projects, said, “For years, SRA was the sole nodal agency, which often led to limitations in scale and pace. A majority of the projects were led by private developers, and while some succeeded, many were delayed or remained incomplete due to financial, legal, or administrative hurdles.”

The government, by bringing in other key government agencies, is now aligning multiple capabilities, land ownership, and administrative powers under one coordinated mission. “The new integrated model has and can further unlock hundreds of acres of underutilised land and stuck projects across Mumbai,” said Agrawal.

Mhada has also adopted a different approach. In April, during the second Redevelopment Conference and Investors Summit hosted by Mhada, the housing authority’s chief Sanjeev Jaiswal revealed game-changing proposals that included fast-tracking redevelopment approvals of old cessed buildings. The reason was that of the 19,642 cessed buildings in Mumbai, 23% have been redeveloped, but 42% are financially unviable due to their small plot size.

Now, redevelopment proposals of old cessed buildings submitted under Sections 79A (1a) or 79A (1b) of the Maharashtra Housing and Area Development Act, 1976, accompanied by 51% consent of residents, should be granted a No-Objection Certificate (NOC) within six weeks. “This approval process will now be governed under the Right to Service Act. In the event of any delay beyond the stipulated period, the NOC will be treated as deemed approved,” Jaiswal said.

Additionally, to make large-scale redevelopment a reality, the state government has rolled out a series of significant policy reforms under the development control regulations (DCR) that regulate land use and development within a city to ensure planned growth and public welfare. These policy reforms are aimed at making realty projects attractive for builders. These include more Floor Space Index (FSI), reduction in premium payment to the government for commercial development, paying premium in instalments, relaxation in GST of 100% for the rehabilitation portion of the project, and clubbing schemes within a 10-km radius.

These amendments and relaxations have led to Mhada opening up 690.81 acres, the third-largest land bank in Mumbai. For now, Adani Realty has bagged the redevelopment of Motilal Nagar I, II, and III, spread across 143 acres, in Goregaon West, and Keystone Realtors will redevelop GTB Nagar in Sion. Mhada has also invited bids for Abhyudaya Nagar at Kalachowkie and Kamathipura in South Mumbai.

Jaiswal said the projected investment by Mhada for rehabilitation schemes after the liberalisation of policies is ₹6,609 crore, and developers are expected to contribute an estimated ₹1.28 lakh crore. The largest chunk of investment will be made in the Motilal Nagar project, an estimated ₹49,384 crore. While realtors are cheering the government’s initiatives, calling them “once-in-a-generation” reforms, they are concerned about the excessive housing inventory that will become available across Mumbai, making the market competitive.

Project management consultant Akbar Jiwani, who specialises in the redevelopment of housing societies, said, “It’s a complete overhaul of the housing ecosystem, if executed well, where all stakeholders will benefit. Developers are likely to get approvals faster and improve profitability, home buyers are likely to get cheaper homes with rental housing options, and for the government, it will be a catalyst as an economic multiplier.”

Frequently Asked Questions

What is the main goal of the slum rehabilitation projects in Mumbai?

The main goal of the slum rehabilitation projects in Mumbai is to rehouse slum-dwellers and provide affordable housing, contributing to the city's urban renewal and development.

How much land has been unlocked for development in Mumbai?

17.71%, or 6,021.50 acres, of Mumbai's habitable land has been unlocked for development by the central and state governments.

Which government bodies are involved in the redevelopment projects?

The government bodies involved in the redevelopment projects include the Slum Rehabilitation Authority (SRA), Maharashtra Housing and Area Development Authority (Mhada), MMRDA, Mumbai Port Authority (MbPA), Maharashtra State Road Development Corporation (MSRDC), Brihanmumbai Electric Supply & Transport undertaking (BEST), and the Brihanmumbai Municipal Corporation (BMC).

What are some of the policy reforms introduced to facilitate redevelopment?

Some of the policy reforms include more Floor Space Index (FSI), reduction in premium payment for commercial development, paying premium in instalments, relaxation in GST for the rehabilitation portion of the project, and clubbing schemes within a 10-km radius.

What are the concerns raised by urban planners about the large-scale land unlocking?

Urban planners have raised concerns about potential corruption, gentrification, and the high cost of even the cheapest apartments, which could make housing unaffordable for many.