Record-Breaking Bid of Rs 2,250 Crore for 2.5-Acre Mumbai Land Parcel
The Railway Land Development Authority (RLDA) has achieved a significant milestone by securing its highest-ever bid of Rs 2,250 crore for a prime 2.5-acre land parcel in south Mumbai’s Mahalaxmi locality. This record-breaking bid highlights the robust demand for strategic urban land in India’s financial capital and reflects the strong investor confidence in Mumbai's real estate market.
The auction for the land parcel attracted four prominent developers, with Dineshchandra R Agrawal Infracon emerging as the highest bidder. Sobha Realty followed with a bid of Rs 1,232 crore, while Lodha Group quoted Rs 1,161 crore. An RMZ Group entity also participated in the bidding process. The competitive nature of the auction underscores the enduring appeal of centrally located, ready-to-develop land in Mumbai.
Industry experts have described the outcome as a strong indicator of the growing appetite for prime land in Mumbai, particularly in well-connected areas like Mahalaxmi. This locality has historically seen high demand from both residential and commercial developers due to its proximity to key transport hubs, business districts, and lifestyle amenities. “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.”
However, some experts have cautioned that the high cost of a leasehold land parcel may pose challenges for the project's completion. 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, with the total payment to be made over eight years, 80% of which should be paid in the first six years.
While the bids have been opened, the selection of the developer will be finalized after checking the 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 offers developers a unique opportunity to tap into the city’s high-end residential and commercial segments, given its prime location and access to key amenities.
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 formalizing 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.
