Rail Land Development Authority (RLDA) has received a record-breaking bid of ₹2,251 crore for a 2.66-acre land parcel in Mahalaxmi. The prime plot, located in South Mumbai near the Mahalaxmi railway station, is being leased for 99 years and is poised to set a new benchmark for land prices in the city.
The RLDA had initially set the reserve price at nearly ₹1,000 crore. However, the top bid submitted by Dineshchandra R Agrawal Infracon significantly exceeded expectations, surpassing offers from major developers including Sobha Realty, Lodha Group, and RMZ Group. The high bid underscores the robust demand for centrally located, well-connected commercial real estate in Mumbai, despite the ongoing macroeconomic challenges. The irregular hexagonal parcel spans approximately 10,801.70 square metres (2.669 acres) and comes with a potential floor space index (FSI) of 4.0. An RLDA official stated that the highest bidder will receive a formal acceptance letter within 10 days, after which development plans will be evaluated for approval. “This transaction signals investor confidence in Mumbai’s strategic locations and the long-term value of commercial land near transit hubs,” said an industry analyst.
This Mahalaxmi deal forms part of a broader strategy by Indian Railways to monetise its land assets in the Mumbai metropolitan region. The RLDA aims to raise close to ₹8,000 crore through the lease of around 25 acres across four prime locations, including Bandra West, Bandra East, and Parel. The Bandra West plot alone, spanning five acres, currently houses railway staff quarters dating back to 1955, highlighting the opportunity to redevelop underutilised land for modern commercial purposes. Experts note that such high-value land transactions not only provide substantial revenue for rail infrastructure projects but also catalyse private sector investment in urban development. The Mahalaxmi parcel’s strategic location, coupled with the city’s continuing commercial growth, makes it a focal point for developers seeking high-return opportunities. Furthermore, careful planning and adherence to sustainable development principles could ensure that such projects support Mumbai’s long-term vision of inclusive and resilient urban growth.
As the RLDA continues to leverage railway-owned assets for infrastructure funding, the Mahalaxmi transaction is likely to influence future bids for prime urban plots, setting a precedent for both land valuation and investor confidence in Mumbai’s real estate landscape.
Mumbai Mahalaxmi Land Receives Record ₹2251 Crore Bid From Railway Authority
