The Adani Group's redevelopment of Dharavi slum will bring in a large chunk of housing units and has a development potential of around 65 million square feet, though at a slow pace, according to Ambit Capital Pvt.
Adani's real estate arm being awarded the 600 acre Dharavi tender changed the dynamic in slum rehabilitation, Ambit said in a note in May.
Assuming that 70% of this will be for residential, and 30% of that will be for rehabilitation, 40,000 saleable units will come in the market over a period of 5-10 years once the project commences, Ambit said.
Taking the project a step closer to reality after more than two decades of delay, the Maharashtra government approved Adani Group's bid for the redevelopment of Dharavi earlier this month. Adani Realty had won the project in November 2022 after quoting Rs 5,069 crore.
Once the letter of intent is issued, the developer will form a special purpose vehicle and contribute 80% of the equity, with the rest coming from the state government. The SPV will have to construct free housing for eligible slum-dwellers, along with amenities and infrastructure.
The redevelopment project has to be completed within seven years. The project is expected to cost about Rs 23,000 crore and would help rehabilitate 6.5 lakh slum-dwellers spread over 2.5 sq km.
Disclaimer: AMG Media Networks Ltd., a subsidiary of Adani Enterprises Ltd., holds a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.