Adani to get 17 lakh sq mts in Motilal Nagar project for sale; invest Rs 1 lakh cr

The Motilal Nagar redevelopment in suburban Mumbai will see the Adani Group invest around Rs 1 lakh crore to create about 28 lakh sq m of built-up space, with MHADA housing for residents. The project spans 143 acres, includes free sale areas for the developer, and aims for seven-year rehabilitation of thousands of tenements under a CD&A framework.

Billionaire industrialist Gautam Adani is set to receive around 17 lakh square metres of saleable area under the ambitious Motilal Nagar redevelopment project in suburban Mumbai. The Adani Group plans to invest nearly Rs 1 lakh crore in the large-scale redevelopment, according to a senior government official.

The Motilal Nagar Redevelopment Project spans 143 acres and is expected to generate a total built-up area of approximately 28 lakh square metres. Of this, over 10.5 lakh square metres will be allocated for rehabilitation of existing residents and for the Maharashtra Housing and Area Development Authority (MHADA).

Estatevue Developers, a company owned by the Adani Group, will receive about 17 lakh square metres (1.82 crore sq ft) as free sale area, which it can sell in the open market. MHADA Vice President and CEO Sanjeev Jaiswal stated that the total investment in the project is expected to be spread over 10 to 15 years.

The Adani Group had emerged as the winning bidder for the project last year, marking it as the first redevelopment under the Compensation Discussion and Analysis (CD&A) model. According to sources, the current market rate in the area is around Rs 30,000 per sq ft, making residential development a highly attractive segment for monetisation.

Officials associated with the project indicated that it will be developed as a mixed-use project, incorporating residential, commercial, educational, and hospitality components. However, the final allocation among these segments is yet to be decided.

Under the redevelopment plan, around 5,000 existing tenements, including residential, commercial, and slum units, are to be rehabilitated within seven years, although minor extensions may be considered. Authorities have emphasised that the priority remains the rehabilitation of original residents.

As part of the project benefits, each residential unit holder will receive a 1,600 sq ft home, while commercial unit holders will get 957 sq ft of space. The redevelopment is expected to significantly increase the population density, with the number of families rising from 5,000 to nearly 25,000.

MHADA will retain ownership of the land, while the developer will execute construction and sales. Any financing or transfer of development rights by the developer will require prior approval from the authority.

The Motilal Nagar project is part of a broader redevelopment push, with 11 additional projects covering 923 acres planned across Mumbai. These include key areas such as Kamathipura, Worli’s Adarsh Nagar, Abhyudaya Nagar, and Bandra Reclamation. Officials believe these developments will dramatically transform the city’s skyline.

In total, around 75,445 tenements are expected to be rehabilitated under these upcoming projects. Authorities have also highlighted the need to revisit the current slum rehabilitation model and improve rental housing viability, noting that rental yields in Mumbai remain low at around 2 percent. The large-scale redevelopment efforts, including projects like Dharavi, are expected to boost housing supply in the city while reshaping its urban landscape.