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The Mumbai Metropolitan Region Development Authority (MMRDA) plans to generate nearly INR 6,000 crore by leasing seven land parcels in Bandra Kurla Complex. Despite strong interest in three commercial plots, residential plots have seen little demand. The auction, offering 80-year leases on 10 plots designated for commercial, residential, healthcare, education, and recreational uses, includes competitive reserve prices. With built-up potentials reaching up to 45,000 square metres on commercial sites, the authority aims to boost finances amid a funding shortfall. This move is a key development in the Mumbai property market, supporting extensive infrastructure investments across the region.
The Mumbai Metropolitan Region Development Authority (MMRDA), which aims to generate nearly INR 6,000 crore by leasing out seven land parcels in Bandra Kurla Complex (BKC), has encountered a lack of interest in all the three residential plots offered for financial bids. However, three commercial plots have attracted potential bidders. Advertisement
The lease tenure for these plots, for which auction bids were invited by MMRDA earlier this week, is set at 80 years. Of the 10 plots on offer, four are designated for commercial use, three for residential purposes, and one each for a hospital, an educational institute, and a clubhouse-cum-sports facility. This collectively represents a total area of 1,10,078 square metres, with a permissible built-up area of 2,11,896.26 square metres, which could be monetised in the coming months.
Among the newly listed plots, the one designated for an educational institution spans 5,117.85 square metres with a floor space index (FSI) of 2, for which MMRDA is aiming to secure a minimum of INR 164.87 crore. The 10,026.44-square-metre plot reserved for a hospital is expected to fetch INR 322.99 crore, also with an FSI of 2. Meanwhile, the clubhouse-cum-sports facility is considerably larger, covering 52,138.43 square metres, but with a lower FSI of 0.20, and has a reserve price of INR 167.96 crore.
According to MMRDA sources, there was no response for the residential plots R-1.5 (5,409 square metres), R-1.6 (4,974 square metres), and R-1.7 (5,876 square metres), as well as commercial plot C-37 (4,956 square metres). However, two commercial plots-C-13 (7,071.9 square metres) and C-19 (6,096.7 square metres)-received bids from Japanese firm Goisu Pvt Ltd and Bandra Kurla Asset Pvt Ltd, the Indian subsidiary of Singapore-based Maple Trees. Brookfield-backed Schloss Bangalore Ltd was the sole bidder for commercial plot C-80 (8,441.9 square metres). MMRDA is likely to conduct a re-bidding process for the plots that failed to attract interest.
The development potential of these commercial plots is substantial, with C-13 offering 45,000 square metres of built-up space, C-19 providing 40,000 square metres, and C-80 covering 33,647 square metres. The reserve price for commercial plots has been established at INR 3,44,500 per square metre of built-up area, while residential plots are priced at INR 3.5 lakh per square metre.
These land lease agreements are expected to significantly strengthen MMRDA's finances, particularly as it faces a funding shortfall due to extensive infrastructure investments planned for the decade. The authority is currently overseeing projects worth thousands of crores across the Mumbai Metropolitan Region (MMR), including Metro corridors, elevated roads, and critical connectors. Unlike municipal corporations, MMRDA lacks taxation powers and relies on land monetisation, commercial leases, and infrastructure-generated revenue, primarily from the Metro network.
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