43% of Adani-Led Dharavi Redevelopment Land Cleared for Open Market Sale
The Maharashtra government’s approved Master Plan for the Dharavi redevelopment project has allocated 43% of the total developable land for free sale in the open market. This translates to 47.95 hectares of the 108.99-hectare net developable area. The redevelopment is being undertaken by Navbharat Mega Developers Private Limited (NMDPL), a joint venture between the Adani Group and the State Government.
Dharavi, one of the largest informal settlements in Asia, spans 251 hectares. However, the plan identifies 108.99 hectares (about 269 acres) as the net developable area. This is divided into three main components: 47.20 hectares for rehabilitation, 47.95 hectares for the free sale portion, and approximately 40 hectares set aside for open spaces.
According to sources familiar with the project, NMDPL plans to launch the first phase of the free-sale component later this year, possibly during the festive season. This phase is expected to include residential units, with more than half of them likely to be in the affordable and mid-income segments. The full free-sale portion will also include commercial and retail developments.
A real estate consultant, who did not wish to be named, stated that around 140 million square feet of built-up area could eventually be developed for sale in the open market. This includes residential towers, office spaces, and retail complexes. Market expectations suggest that prices in the area could rise significantly after redevelopment. While the current average rate is about ₹15,000 per square foot, prices may approach double that figure once infrastructure and amenities are in place.
Under the rehabilitation portion of the plan, approximately 72,000 tenants, including over 13,000 non-residential tenants, are eligible for new housing or commercial units. Each residential beneficiary will receive a 350 square foot unit. This is an increase from the 300 square foot units typically allotted in other slum redevelopment projects under the Maharashtra Slum Rehabilitation Act. Only one unit will be given per eligible resident, irrespective of how many tenements they currently occupy.
The Dharavi redevelopment project has been under discussion for several decades. The current plan is estimated to cost over ₹95,000 crore. The first commencement certificate for construction was issued on January 14, 2025. As per the approved timeline, construction for the rehabilitation portion must be completed within seven years—by January 13, 2032. The full project, including market-sale components, is expected to take up to 17 years.
The redevelopment of Dharavi is one of India’s most complex urban renewal efforts. It involves resettlement, infrastructure building, and the introduction of a planned real estate market in a densely populated area. The project aims to provide modern housing to current residents while unlocking land value for commercial development.
The scale of the project, combined with its location in the heart of Mumbai, is expected to have a lasting impact on the city’s real estate landscape. The coming months will be crucial as the first phase of the sale component moves toward launch, and work on the rehabilitation units continues.
Image source- adani.com