Mumbai Railways To Lease Mahalaxmi And Bandra Plots Earning Rs 6k Crore Revenue
Mumbai is poised for a fresh wave of real estate activity as Indian Railways prepares to lease two of its prime land parcels in Mahalaxmi and Bandra. The initiative, driven by the Rail Land Development Authority (RLDA), is expected to generate over ₹6,000 crore in upfront lease revenue while reshaping urban landscapes in these already high-value zones.
The 2.67-acre Mahalaxmi plot, with a base price set at nearly ₹993 crore, has already been opened for bids. The Bandra parcel, spread across 10.6 acres near the railway station, will soon follow with its request for proposals expected within days. Developers eyeing the land will also be required to share a fixed percentage of their revenue under the lease agreement, ensuring continued returns for the railways beyond the upfront payment. Mahalaxmi’s transformation over the last three decades has been remarkable. Once dominated by textile mills and workers’ housing, the area has evolved into a hub of luxury towers, office complexes, and commercial spaces. The railway plot, located near major transit points including the suburban rail station, metro, and monorail corridors, is among the last significant land parcels available in the neighbourhood. Industry experts say its connectivity to Nariman Point, Lower Parel and the Bandra-Kurla Complex makes it particularly attractive for luxury residential or mixed-use projects.
The tender conditions highlight a floor space index (FSI) of 4.05, with the possibility of enhanced FSI under the National Transit Oriented Development (TOD) Policy. This could enable developers to construct high-density, mixed-use towers, aligning with sustainable urban planning principles that promote compact development around transit hubs. Officials added that higher FSI would also trigger proportionate revenue sharing with the railways. While the Mahalaxmi site features old office structures, warehouses, and a handful of trees, its prime location and potential for vertical expansion have already drawn interest. Developers are expected to discuss finer terms, including revenue sharing models, during a pre-bid meeting scheduled this month in south Mumbai.
The Bandra plot, though larger, comes with its own challenges. Situated in the heart of the city’s western suburbs, the land has long been encroached upon. Experts, however, view its redevelopment as a critical opportunity to unlock value in one of Mumbai’s most connected zones, especially with Bandra serving as a gateway between the city’s financial centres and upcoming infrastructure corridors. Urban planners note that while the revenue prospects are significant, the projects must balance commercial ambition with sustainability and equity. Large-scale real estate development in Mumbai has often triggered debates around displacement, environmental impact, and affordability. For the city’s long-term resilience, experts emphasise the importance of ensuring that public assets like railway land are used to promote inclusive growth alongside economic gains.
The railway’s monetisation drive is not just a financial exercise but a potential turning point in how Mumbai leverages scarce land resources. If executed with foresight, the Mahalaxmi and Bandra leases could simultaneously boost railway finances, fuel the luxury real estate market, and integrate sustainable principles into the city’s urban fabric.
Mumbai Railways To Lease Mahalaxmi And Bandra Plots Earning Rs 6k Crore Revenue
