With the Adani Group securing its third major redevelopment project in Mumbai through the large Motilal Nagar redevelopment project in Goregaon (West) under the aegis of the Maharashtra Housing and Area Development Authority (MHADA), real estate observers say the group is fast becoming a "power hub" in Mumbai's vast real estate market, particularly in redevelopment. This follows its ongoing efforts to initiate the Dharavi redevelopment project and the clearance of decks for a 17-acre redevelopment project at Bandra Reclamation.
According to sources, Adani Properties Pvt Ltd, an Adani Group entity, will redevelop the Motilal Nagar project as a construction and development agency (C&DA) on MHADA layouts numbered Motilal Nagar-I, II, and III. These parcels contain low-rise residences, commercial properties, and slum pockets. The total investment for the project may reach Rs 36,000 crore, with development potential spanning approximately 75 acres.
Large land bank
Overall, Adani will develop around 143 acres, handing over 3.97 lakh square metres (4.27 million square feet) of built-up area to MHADA, which oversees affordable housing in Maharashtra. Reports indicate that Adani outbid construction giant Larsen & Toubro (L&T), which had proposed handing over 2.6 lakh square metres in MHADA’s tendering process. The project is expected to rehabilitate 3,372 residential units, 1,600 eligible slum dwellers, and 328 commercial units.
Motilal Nagar-I is known for its commercial establishments, including those connected to the entertainment industry. The presence of commercial spaces is a critical aspect of the project, as Adani Group is focused on integration within its Mumbai real estate ventures.
“In terms of Adani's growth path in Mumbai's real estate, township-like projects are clearly an important part of the strategy, as seen with Dharavi, which also has thousands of commercial units besides many residential units. The integrated approach reflects the scale of projects the Adani Group is planning in Mumbai, including redevelopment projects in Andheri (West), Kanjurmarg, and other areas,” said a real estate observer based in Mumbai.
Industry experts point out that Adani’s execution of the Dharavi project, which may require an initial Rs 11,000 crore investment, demonstrates its capability to handle large-scale redevelopment projects like Motilal Nagar. With rising investment in redevelopment projects across Mumbai’s key suburbs, Adani has also strengthened its personnel over the years.
Complex projects
“For a company handling a project as complex as Dharavi, delivering large-scale redevelopment projects like Motilal Nagar is well within its capabilities. Successful real estate firms have built strong teams, and Adani Group has done the same over the past few years. Previously, large listed entities lacked the bandwidth for such projects, where developers must allocate space to MHADA, tenants, and slum dwellers while also providing amenities and commercial infrastructure. Only large and listed players will sustain in this space,” said Chintan Vasani, founder and managing partner at Wisebiz Realty.
Located along the New Link Road in Goregaon, the Motilal Nagar area has gained traction due to infrastructure projects like the Yellow Line of the Mumbai Metro. However, local brokers note that property prices in the area remain lower than in other western suburbs. Adani is expected to leverage economies of scale in the project, but its monetization strategy will be closely monitored.
“As far as the topline strategy for the Motilal Nagar project is concerned, it is expected to be continuously delivered over two decades, with commercial properties also coming up on the land. Right now, such deals appear to be part of an acquisition strategy. The Adani Group has strong financial backing and expertise in liaising, and they are working on economies of scale. However, the monetization strategy for the project remains a key factor to watch,” said Ritesh Mehta, Senior Director and Head- West, Residential Services and Developer Initiatives at JLL India.
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