Railway Land in Mahalaxmi Attracts Record ₹2,251 Crore Lease Offer

A 2.6-acre land parcel in Mahalaxmi, Mumbai, has set a new benchmark in the city’s real estate market, attracting a record ₹2,251 crore bid for a long-term lease. In September, the Rail Land Development Authority (RLDA) announced plans to lease the strategically located land in South Mumbai for 99 years. Spread across 10,801.7 square metres, the land has been earmarked for commercial development. RLDA had fixed a reserve price of ₹1,000 crore, but the final bid exceeded expectations, making it the highest-ever price achieved for a 2.6-acre plot in Mumbai.

Several leading developers, including Sobha Realty, Lodha Group, and RMZ Group, participated in the bidding process. The highest bidder is expected to receive the Letter of Acceptance within the next 10 days, following which project plans will be evaluated before final railway approvals are granted.

Indian Railways, through RLDA, aims to raise at least ₹8,000 crore by leasing prime land parcels across Mumbai. The authority plans to lease nearly 25 acres spread across four major locations in the financial capital. This includes a five-acre RLDA plot in Bandra West, currently housing railway staff quarters built in 1955, along with parcels in Bandra East and Parel in central Mumbai. In another major transaction earlier in 2025, the Reserve Bank of India acquired 4.16 acres of land in Nariman Point from Mumbai Metro Rail Corporation Limited (MMRCL) for ₹3,472 crore, ranking among the largest land deals by value in India.