Why Dharavi's Redevelopment Will Transform Mumbai's Real Estate Market - 6 Key Insights

India's largest slum, Dharavi, is on the brink of a major transformation. The Dharavi Redevelopment Project Ltd (DRPPL), a joint venture between the Adani Group and the state government, has identified 540 acres of suburban land to relocate residents deemed 'ineligible' for free housing. This ambitious project promises to reshape Mumbai's real estate landscape, addressing both environmental and social challenges while offering significant investment opportunities.

1. Massive Land Identification for Relocation:

 The Dharavi Redevelopment Project Ltd (DRPPL), an 80:20 joint venture between the Adani Group and the state government, has identified 540 acres of suburban land to relocate Dharavi's 'ineligible' residents. The land parcels will remain under government control, ensuring systematic rehabilitation.

2. Complex Relocation Process:

The relocation involves moving over one lakh households from Dharavi. The DRPPL plans to build nearly 1.5 lakh homes on about 1,000 acres of land across suburban Mumbai. However, identifying suitable land is challenging due to development constraints like Coastal Regulation Zone norms and aviation height restrictions.

3. Environmental and Social Challenges:

A significant portion of the identified land is near Deonar and Mulund dumping grounds, which require years to be suitable for human settlement. This has sparked protests from local residents and political parties, fearing overcrowding and pressure on public facilities.

4. Extensive Project Timeline:

The DRPPL has a seven-year timeline to execute the rehabilitation in phases, with a 17-year deadline to complete the entire project. This includes building hotels, convention centres, business parks, and other infrastructure.

5. Survey and Eligibility Determination:

A fresh survey, underway since March 2024, aims to determine eligibility for free housing. An earlier survey estimated around 64,000 ground-floor tenements as eligible. The total population of Dharavi is over a million.

6. Impact on Mumbai’s Real Estate Market:

Pankaj Kapoor, managing director of Liases Foras, remarked that completing the project in 7-8 years would be remarkable but expects it might extend to 17 years due to enormous challenges. Once built, the new Nav Dharavi townships can uplift the profile of a region's real estate market and attract premium rates.

Key Stakeholders and Their Views: SVR Srinivas, CEO of DRP/SRA: Emphasized the need for sufficient land to rehabilitate non-eligible residents within Mumbai. He highlighted that 18% of the plot area will be left for roads, 15% for green and open spaces, and 7% for infrastructure, with 10% reserved for commercial establishments.

Urban Planner Sulakshna Mahajan and Housing Expert Chandrashekhar Prabhu: Questioned the need to relocate a large section outside Dharavi, arguing for in-situ development to maintain the community's socio-economic fabric.

Strategic Planning and Future Outlook:

The project's aim is to accommodate all residents of Dharavi within Mumbai, ensuring minimal dislocation and improved quality of life. Srinivas mentioned that the new colonies will be planned to enhance living standards and could potentially boost the real estate market in those regions.