Land price in Mumbai is rising rapidly day by day. Against this backdrop, a massive bid of ₹2,250 crore was received during an auction for a 2.5-acre land parcel in the Mahalaxmi area of Mumbai.
A massive bid for a 2.5-acre land parcel in South Mumbai’s Mahalaxmi area.
The Railway Land Development Authority (RLDA) received this bid for a 2.5-acre plot located in South Mumbai’s Mahalaxmi area. Several developers participated in the auction, and a number of competitive bids were placed. During the bidding process, Dineshchandra R. Agrawal Infracon submitted the highest bid of ₹2,250 crore. This was followed by Shobha Realty with a bid of ₹1,332 crore, while the Lodha Group placed a bid of ₹1,161 crore. This auction clearly reflects the sharp increase in land price in Mumbai.
Mahalaxmi, located in the South Mumbai region, serves as a vital link between South Mumbai and Central Mumbai. The area is known as one of the city’s premium localities and enjoys excellent connectivity to Worli and Lower Parel. It is well connected through the Western Express Highway, coastal road, railway network, and bus services. Due to this strong connectivity, the locality holds exceptional importance, especially from the perspective of luxury housing, which has a direct impact on land price in Mumbai.
Land prices in Mumbai are beyond the reach of the common people.
This bidding transaction highlights the growing importance of land price in Mumbai . The bid is not only among the largest in the city but is also considered the biggest-ever auction of long-term lease rights in India’s real estate market. As a result, it has drawn significant attention from the real estate sector. Prominent developers such as Dineshchandra R. Agrawal Infracon, Shobha Realty, the Lodha Group, and RMZ Group participated in this auction.
According to the bid documents for the 2.5-acre Mahalaxmi plot, the land will be leased for a period of 99 years. The reserve price for this land parcel was ₹993 crore. The highest bidder will be required to pay an initial amount of ₹100 crore at the time of selection. The bid follows a revenue-sharing model, and the total value is to be paid within eight years, with 80% of the amount payable within the first six years. Such structured deals are becoming common as land price in Mumbai continues to climb.
Among all auctions conducted by the Railway Land Development Authority so far, this transaction is considered the largest financial deal to date. After completing all necessary procedures and due diligence, the formal process will be finalized, following which the land will be handed over. This further reinforces how premium land parcels are shaping land price in Mumbai.
Over the years, land price in Mumbai has steadily moved beyond the reach of the common citizen. Mumbai’s strong infrastructure, availability of amenities, and its status as the financial capital of India continue to attract large-scale investments from developers, keeping prices significantly higher than in other cities.
The rapid expansion of metro connectivity is also transforming Mumbai’s real estate market. While buyer interest in traditional areas has slowed, improved connectivity has boosted demand in central suburbs such as Kurla, Ghatkopar, and Mulund. Real estate activity in areas like Dadar and Parel has seen a slowdown, whereas other regions are witnessing growth. Additionally, the upcoming Navi Mumbai International Airport has accelerated real estate transactions. The development of business hubs, IT parks, hotels, and office spaces continues to influence land price in Mumbai across regions.
The sheer scale of the ₹2,250 crore transaction for the Mahalaxmi plot highlights the strong demand for land, intense competition among investors, and the broader economic momentum driving land price in Mumbai upward.
