Mumbai's Urban Transformation: 18% of City's Real Estate Opened for Development
The Maharashtra government has unlocked 18% of Mumbai's real estate for redevelopment, with a focus on housing for economically vulnerable citizens, marking a significant step in the city's urban renewal.
MumbaiUrban RenewalReal EstateAffordable HousingSlum RehabilitationReal Estate MumbaiSep 11, 2025
The scale of this redevelopment is sweeping. According to data sourced by Hindustan Times, Mumbai has 34,000 acres of habitable land, which is 23% of the city's total area. Of this, 17.71%, or 6,021.50 acres, has been unlocked for development by the central and state governments. This land is priced like gold, and the city is in the throes of a major urban renewal.
A significant portion of this land, about one-third 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 Dharavi Redevelopment Project. The Maharashtra Housing and Area Development Authority (Mhada), which focuses on providing affordable housing, has opened up 690.81 acres of its land for redevelopment through various measures.
The land being redeveloped by SRA and Mhada together accounts for almost half of the government-owned land opened up for development in Mumbai – 2,759.4 acres out of the total 6,021.50 acres. This includes areas such as Kamathipura in South Mumbai and Motilal Nagar in the suburbs.
Eight government bodies have opened up vast tracts of land for development and redevelopment, from the Ganpat Patil Nagar slums in Dahisar to the Mumbai Port Authority (MbPA) land 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 (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 this initiative. Owning even a few square feet of real estate in Mumbai has always been a dream, and for the city’s economically vulnerable citizens, it is coming true.
However, urban planner Chandrashekhar Prabhu, a former Mhada president, cautions that such large-scale unlocking of prime government land and indiscriminate increases in Floor Space Index (FSI) could encourage corruption and result in gentrification. He warns that the cheapest apartments in remote areas will be sold for nothing less than ₹2 crore, and in the island city, no decent accommodation is available for less than ₹4 crore. Prabhu also criticizes the misappropriation of land as a resource, likening it to selling the family gold without any return to the government.
According to the 2011 Census, Mumbai's population stood at 12.43 million, with 41.30%, or 5.13 million, living under blue tarpaulin-covered roofs in extremely cramped conditions. Under the largest-ever coordinated push for rehabilitation, the SRA, in collaboration with seven government agencies, is overseeing the redevelopment of slums spread across 2,068 acres. 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, with government and civic agencies expediting 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, notes that the new integrated model can unlock hundreds of acres of underutilized land and stuck projects across Mumbai.
The government has taken a decisive step in resolving redevelopment challenges that remained unresolved for decades. By establishing sustainable financial models, they are ensuring that even the most ambitious urban renewal projects are completed with long-term viability. However, Prabhu has a contrarian view, suggesting that slum-dwellers will continue to reside in slums, just vertical ones, and will get isolated in ghettos. He also warns against gifting land to private developers, estimating that ₹18 lakh crore will be generated through these rehabilitation projects.
Mhada has adopted a different approach, fast-tracking redevelopment approvals of old cessed buildings. In April, during the second Redevelopment Conference and Investors Summit hosted by Mhada, the housing authority’s chief Sanjeev Jaiswal revealed game-changing proposals. These include fast-tracking redevelopment approvals of old cessed buildings, which are often financially unviable due to their small plot size. Now, redevelopment proposals submitted under specific sections of the Maharashtra Housing and Area Development Act, accompanied by 51% resident consent, should be granted a No-Objection Certificate (NOC) within six weeks.
Additionally, the state government has rolled out significant policy reforms under the development control regulations (DCR) to make realty projects more attractive for builders. These include more FSI, reduction in premium payments, paying premiums in installments, relaxation in GST for the rehabilitation portion of the project, and clubbing schemes within a 10-km radius.
These reforms have led to Mhada opening up 690.81 acres, the third-largest land bank in Mumbai. 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.
The projected investment by Mhada for rehabilitation schemes after the liberalization of policies is ₹6,609 crore, with developers expected to contribute an estimated ₹1.28 lakh crore. The largest chunk of investment will be made in the Motilal Nagar project, estimated at ₹49,384 crore.
While realtors are cheering the government’s initiatives, calling them “once-in-a-generation” reforms, they are privately concerned about the excessive housing inventory that will become available across Mumbai, making the market competitive. Project management consultant Akbar Jiwani, who specializes in the redevelopment of housing societies, believes that if executed well, this overhaul of the housing ecosystem will benefit all stakeholders. Developers are likely to get approvals faster and improve profitability, home buyers are likely to get cheaper homes with rental housing options, and the government will see it as a catalyst for economic growth.
Frequently Asked Questions
What percentage of Mumbai's real estate has been unlocked for development?
18% of Mumbai's real estate has been unlocked for development and redevelopment by the central and state governments.
Which government agencies are involved in the slum rehabilitation projects?
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 (BEST), and the Brihanmumbai Municipal Corporation (BMC) are involved in the slum rehabilitation projects.
How much land has been allocated for affordable housing?
2,759.4 acres of the 6,021.50 acres of government-owned land opened up for development in Mumbai is allocated for rehousing slum-dwellers and for affordable housing.
What are some of the new policy reforms introduced to make realty projects more attractive?
The new policy reforms include more Floor Space Index (FSI), reduction in premium payments, paying premiums in installments, relaxation in GST for the rehabilitation portion of the project, and clubbing schemes within a 10-km radius.
What is the projected investment for Mhada's rehabilitation schemes?
The projected investment by Mhada for rehabilitation schemes after the liberalization of policies is ₹6,609 crore, with developers expected to contribute an estimated ₹1.28 lakh crore.
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