Mumbai | June 14, 2025
In a significant step toward urban renewal, the Maharashtra Housing and Area Development Authority (MHADA), through its Mumbai Building Repairs and Reconstruction Board (MBRRB), has officially invited bids for the long-awaited cluster redevelopment of Kamathipura — one of Mumbai’s oldest and most congested neighborhoods.
The ambitious plan covers the integrated redevelopment of approximately 943 cessed and non-cessed buildings across Lanes 1 to 15, under Regulation 33(9) of the Development Control and Promotion Regulations (DCPR) 2034. These buildings, many over 100 years old, are home to roughly 8,001 residential and commercial occupants — including 6,625 households and 1,376 business units.
Spanning nearly 34 acres with a net plot area of 73,145 square metres, the project has been conceptualized as a transformative “Urban Village.” Given Kamathipura’s narrow lanes and fragmented plot sizes, cluster redevelopment was identified as the only feasible approach by MHADA.
The blueprint, designed by Mahimtura Consultants, was approved through a government resolution on January 12, 2023. It proposes the creation of 4,500 new housing units, along with upgraded commercial facilities and dedicated recreational spaces.
Under the compensation model, landowners will receive 500 sq ft apartments, with higher entitlements based on plot size — as per a government resolution dated July 2, 2024. Residents will also receive monthly rent compensation during the construction phase.
As part of the agreement, approximately 44,000 sq m of land will be transferred to MHADA, while developers will gain rights to develop 5.67 lakh sq m — making this one of the largest inner-city redevelopment initiatives in the state.
The Kamathipura Cluster Redevelopment joins the ranks of mega-projects like the ₹95,790 crore Dharavi Redevelopment and the ₹36,000 crore Motilal Nagar Project, both spearheaded by the Adani Group. Though developer selection for Kamathipura remains open, real estate interest is surging. According to data from Square Yards, property prices in the area rose from ₹13,508 per sq ft in Q1 CY24 to ₹13,980 in Q1 CY25, driven by anticipation of redevelopment.
If executed effectively, the Kamathipura project will reshape a historic precinct into a modern urban enclave, while preserving its long-standing social fabric — signaling a major milestone in Mumbai’s evolving development story.
