Mumbai's Prime Mahalaxmi Land Fetches Record Rs 2,250 Crore Bid
The Railway Land Development Authority (RLDA) has secured its highest-ever bid of Rs 2,250 crore for a 2.5-acre plot in Mahalaxmi, Mumbai, reflecting strong investor confidence in the city's real estate market.
Mumbai Real EstateLand AuctionRldaMahalaxmiDineshchandra R Agrawal InfraconReal Estate MumbaiDec 23, 2025
Real Estate Mumbai:The Railway Land Development Authority (RLDA) has received its highest-ever bid of Rs 2,250 crore for a prime 2.5-acre land parcel in south Mumbai’s Mahalaxmi locality, said persons with direct knowledge of the development. This marks the highest price benchmark for auction of long-term lease rights in India’s real estate market. The competitive bidding attracted some of the country’s top developers, reflecting strong investor confidence in prime urban land. The auction saw four prominent developers vying for the plot.
Among the bidders, Dineshchandra R Agrawal Infracon emerged as the highest bidder, offering Rs 2,250 crore. Sobha Realty followed with a bid of Rs 1,232 crore, while Lodha Group quoted Rs 1,161 crore. An RMZ Group entity was another participant, said one of the persons mentioned above.
Industry experts described the outcome as a strong indicator of the growing appetite for prime land in Mumbai, particularly in well-connected areas like Mahalaxmi, which has historically seen high demand from both residential and commercial developers. “The response to this auction underscores the enduring appeal of strategic land parcels in Mumbai,” said a senior real estate consultant. “Investors are increasingly willing to pay premium prices for centrally located, ready-to-develop land, anticipating robust returns in the long term.”
Some experts, however, also cautioned that this high cost for a leasehold land parcel may act as a challenge for the project to get completed. As per the bid documents, the reserve price for the plot, which will be allotted through a 99-year lease, was Rs 993 crore. The highest bidder is expected to pay Rs 100 crore initially at the time of selection. The developers were expected to place their bids on a revenue share basis and the same is to be paid over eight years in total with 80% in the first six years.
While the bids have been opened, the selection of the developer will be finalized after checking technical and financial feasibility of the offer. ET's email queries to RLDA, Dineshchandra R Agrawal Infracon, Sobha, Lodha, and RMZ remained unanswered. The 2.5-acre Mahalaxmi site, located in one of south Mumbai’s most sought-after localities, offers developers an opportunity to tap into the city’s high-end residential and commercial segments. Its proximity to key transport hubs, business districts, and lifestyle amenities makes it particularly attractive for mixed-use development projects.
This record bid surpasses many previous land auctions by RLDA, highlighting the growing confidence of developers in Mumbai’s property market despite broader macroeconomic challenges. Over the past few years, the city has witnessed a resurgence in real estate activity, driven by demand for luxury housing, commercial spaces, and redevelopment projects. While the auction process has concluded, the final allotment remains subject to standard regulatory approvals and due diligence. RLDA officials are expected to move forward with formalising the allotment in the coming weeks, paving the way for one of Mumbai’s most high-profile development projects.
The Mahalaxmi land auction not only sets a new benchmark in terms of bid values but also signals a robust appetite among developers for premium urban land in India’s financial capital. As competition intensifies in Mumbai’s core markets, such auctions are likely to attract even higher bids in the future, reinforcing the city’s status as a hotspot for large-scale real estate investment.
Among the bidders, Dineshchandra R Agrawal Infracon emerged as the highest bidder, offering Rs 2,250 crore. Sobha Realty followed with a bid of Rs 1,232 crore, while Lodha Group quoted Rs 1,161 crore. An RMZ Group entity was another participant, said one of the persons mentioned above.
Industry experts described the outcome as a strong indicator of the growing appetite for prime land in Mumbai, particularly in well-connected areas like Mahalaxmi, which has historically seen high demand from both residential and commercial developers. “The response to this auction underscores the enduring appeal of strategic land parcels in Mumbai,” said a senior real estate consultant. “Investors are increasingly willing to pay premium prices for centrally located, ready-to-develop land, anticipating robust returns in the long term.”
Some experts, however, also cautioned that this high cost for a leasehold land parcel may act as a challenge for the project to get completed. As per the bid documents, the reserve price for the plot, which will be allotted through a 99-year lease, was Rs 993 crore. The highest bidder is expected to pay Rs 100 crore initially at the time of selection. The developers were expected to place their bids on a revenue share basis and the same is to be paid over eight years in total with 80% in the first six years.
While the bids have been opened, the selection of the developer will be finalized after checking technical and financial feasibility of the offer. ET's email queries to RLDA, Dineshchandra R Agrawal Infracon, Sobha, Lodha, and RMZ remained unanswered. The 2.5-acre Mahalaxmi site, located in one of south Mumbai’s most sought-after localities, offers developers an opportunity to tap into the city’s high-end residential and commercial segments. Its proximity to key transport hubs, business districts, and lifestyle amenities makes it particularly attractive for mixed-use development projects.
This record bid surpasses many previous land auctions by RLDA, highlighting the growing confidence of developers in Mumbai’s property market despite broader macroeconomic challenges. Over the past few years, the city has witnessed a resurgence in real estate activity, driven by demand for luxury housing, commercial spaces, and redevelopment projects. While the auction process has concluded, the final allotment remains subject to standard regulatory approvals and due diligence. RLDA officials are expected to move forward with formalising the allotment in the coming weeks, paving the way for one of Mumbai’s most high-profile development projects.
The Mahalaxmi land auction not only sets a new benchmark in terms of bid values but also signals a robust appetite among developers for premium urban land in India’s financial capital. As competition intensifies in Mumbai’s core markets, such auctions are likely to attract even higher bids in the future, reinforcing the city’s status as a hotspot for large-scale real estate investment.
Frequently Asked Questions
What is the highest bid received for the Mahalaxmi land parcel?
The highest bid received for the Mahalaxmi land parcel is Rs 2,250 crore.
Who made the winning bid for the Mahalaxmi land?
Dineshchandra R Agrawal Infracon made the winning bid for the Mahalaxmi land.
What is the reserve price for the 2.5-acre land parcel?
The reserve price for the 2.5-acre land parcel was Rs 993 crore.
How long will the winning bidder lease the land?
The winning bidder will lease the land for 99 years.
What are the potential challenges for the project given the high bid?
One potential challenge is the high cost of the leasehold land parcel, which may act as a financial burden and make it challenging to complete the project.