The Railway Land Development Authority (RLDA) achieved a record bid of ₹2,250 crore for a prime 2.5-acre site in Mahalaxmi, South Mumbai, according to sources familiar with the situation.
This unprecedented bid sets a new standard for long-term lease rights auctions in India’s real estate sector. The competitive process drew interest from several of the nation’s leading developers, indicating strong investor confidence in prime urban properties. Four major developers competed for the plot.
Dineshchandra R Agrawal Infracon emerged as the top bidder with a ₹2,250 crore offer, followed by Sobha Realty at ₹1,232 crore, and Lodha Group with ₹1,161 crore. An entity from RMZ Group also participated, according to insiders.
Industry analysts view this result as a clear sign of the increasing demand for prime land in Mumbai, particularly in well-connected areas like Mahalaxmi, which has historically drawn interest from both residential and commercial developers.
“The interest shown in this auction highlights the ongoing appeal of strategic land in Mumbai,” noted a senior real estate consultant. “Investors are ready to invest substantial amounts for centrally located, ready-to-develop properties, anticipating solid long-term returns.”
However, some experts warned that the high price of the leasehold land could pose challenges for the completion of the associated project.
According to the bidding documents, the plot’s reserve price, to be granted via a 99-year lease, was set at ₹993 crore. The highest bidder must pay an initial ₹100 crore at the time of selection. Bids were expected to be made on a revenue share basis and are slated to be paid over eight years, with 80% due in the first six years.
While the bids have been submitted, the final developer selection will depend on assessing the technical and financial viability of the proposals.
RealtyDailyNews’s inquiries via email to RLDA, Dineshchandra R Agrawal Infracon, Sobha, Lodha, and RMZ have not received responses.
The 2.5-acre Mahalaxmi plot, situated in one of South Mumbai’s most desirable neighborhoods, presents developers with an opportunity to engage with the city’s upscale residential and commercial markets. Its closeness to key transport hubs, business areas, and lifestyle amenities makes it particularly appealing for mixed-use developments.
This record bid not only exceeds previous RLDA land auctions but also reflects growing developer confidence in Mumbai’s property market, despite broader economic challenges.
In recent years, the city has experienced a revival in real estate activity, driven by the demand for luxury housing, commercial spaces, and redevelopment projects.
While the auction process has concluded, the final allotment is still subject to regulatory approvals and due diligence. RLDA officials are expected to proceed with finalizing the allotment in the weeks ahead, setting the stage for one of Mumbai’s most notable development projects.
The Mahalaxmi land auction not only establishes a new bid value benchmark but also indicates strong developer interest in premium urban properties in India’s financial center. As competition intensifies in Mumbai’s core markets, similar auctions are likely to attract even higher bids in the future, solidifying the city’s status as a prime location for large-scale real estate investments.
