In a major boost to Mumbai’s urban renewal landscape, Adani Properties and Maharashtra Housing and Area Development Authority (Mhada) have formally entered into an agreement to undertake one of the largest redevelopment projects in the city’s history. The project is expected to transform thousands of aging tenements into modern, high-rise residential and commercial complexes, enhancing quality of life for residents while revitalising Mumbai’s dense urban zones.
Key highlights of the agreement
The partnership between Adani Properties, part of the Adani Group’s real estate arm, and Mhada will focus on redeveloping multiple clusters in central Mumbai. As per initial project contours:
- Total area covered: Approximately 10 million sq ft
- Number of buildings: 100+ old Mhada-registered buildings across various clusters
- Tenements impacted: Over 10,000 families set to benefit
- Estimated project cost: ₹25,000 crore including land development, rehabilitation, and construction
- Timeline: Expected completion within 7-10 years in phased manner
The deal was signed at Mhada’s Mumbai headquarters in the presence of top officials, marking the culmination of months of negotiation and clearance from state housing and urban development departments.
What does this redevelopment entail?
Under the agreement:
- Residents will receive free, larger flats in newly constructed towers with modern amenities under the rehabilitation scheme.
- Adani will develop additional sale components in the redeveloped land parcels, monetising market flats to recover project costs.
- New infrastructure will include wider internal roads, landscaped open areas, schools, community halls, healthcare units, and green zones integrated into the township plan.
- The redevelopment aims to transform areas marked by dilapidated structures and congested lanes into planned vertical townships with improved drainage, sewerage, water, and electricity networks.
Strategic importance for Adani and Mhada
| Stakeholder | Strategic Gain |
|---|---|
| Adani Properties | Strengthens its real estate footprint in Mumbai’s prime clusters; ensures pipeline of market-sale residential projects; aligns with group’s urban infrastructure and housing strategy |
| Mhada | Achieves large-scale rehabilitation without direct funding; fulfills public housing objectives efficiently; enhances urban planning credibility |
Mumbai’s redevelopment landscape and competitive context
Mumbai faces an urgent need for redevelopment as nearly 60% of its buildings are over 30 years old, with thousands of structures classified as “cessed” or dangerous for habitation. Other major players such as L&T Realty, Godrej Properties, Piramal Realty, and Shapoorji Pallonji have also been active in cluster redevelopment.
Adani Properties’ entry into this segment with the Mhada partnership is significant because:
- It involves direct government collaboration, enhancing approval and execution efficiency
- Scale of over 10,000 tenements makes it one of Mumbai’s largest rehabilitation-linked real estate projects
- Integrates with the group’s broader focus on urban infrastructure, metro development, data centres, and commercial hubs in Mumbai and Navi Mumbai
Challenges and risk factors
Despite the scale and promise, such projects face multiple execution challenges:
- Consensus-building with tenants: Obtaining consent from all tenants and resolving disputes around flat sizes, floor allotment, and temporary transit accommodation often cause delays.
- Regulatory approvals: Cluster redevelopment requires environmental, traffic, heritage, and civic clearances across departments, leading to timeline extensions.
- Financing structure: Project viability is linked to market absorption of sale units, fluctuating real estate prices, and input cost inflation.
- Infrastructure integration: Coordinating with civic agencies for road widening, sewerage, drainage, and utilities integration is crucial for sustainable completion.
Project phases and financial details
The redevelopment will be executed in multiple phases, prioritising clusters with the most vulnerable structures. Initial financial planning includes:
- Phase 1 investment: Estimated ₹6,000 crore for redevelopment of 25-30 buildings, with project financing via debt-equity mix
- Saleable area: Over 6 million sq ft across phases to be monetised through market housing and commercial sales
- Rehabilitation flats: 350-450 sq ft units with standardised amenities and modern safety norms, replacing the existing 150-250 sq ft tenements
Adani Properties is expected to appoint leading contractors, structural consultants, and architects to maintain execution standards and timelines.
Broader urban policy context
This mega redevelopment aligns with Maharashtra’s renewed focus on urban transformation through:
- Cluster redevelopment policy revisions to ease FSI caps, premium payments, and approval delays
- Integration with Mumbai Coastal Road, Metro 2 and 3, and Navi Mumbai International Airport to decongest and de-risk urban density
- Housing department’s target to redevelop over 16,000 old buildings in Mumbai by 2035, providing safer homes to citizens
Expert views
Urban planning analysts and real estate consultants have welcomed the agreement, noting:
“Mumbai’s housing stress is driven by outdated, unsafe structures. Partnerships like Adani-Mhada create scale, bring technical capability, and ensure tenant dignity through planned rehabilitation with zero financial burden,” said a city redevelopment expert.
Residents’ perspective
Tenants in cessed buildings have long demanded redevelopment due to leaking roofs, structural instability, lack of lifts, and poor sanitation. Speaking after the signing, a local housing society representative said:
“We have waited decades for a credible developer with resources and approvals. This deal gives hope of a dignified life in a safe flat within a planned township.”
Upcoming action steps
- Preparation of masterplan and cluster layouts
- Tenant outreach and consent collection drives
- Finalisation of project financing partners and contractors
- Laying foundation stones for first clusters by mid-2026 if approvals stay on track
Future outlook
For Adani Properties, this agreement is a stepping stone towards its targeted real estate expansion in Mumbai Metropolitan Region, complementing its commercial, logistics, and infrastructure portfolio. For Mhada and the state government, it represents an execution model to address Mumbai’s aging housing crisis efficiently.
Disclaimer: This news article is for informational purposes only. Readers are advised to verify official government and company announcements before making any business, investment, or housing-related decisions based on the details contained herein.
