The Railway Land Development Authority (RLDA) has received its highest-ever bid of Rs 22.5 billion for a 2.67-acre railway land parcel at Mahalaxmi in south Mumbai, setting a new benchmark for long-term lease auctions in the city’s real estate market. The land parcel, measuring about 10,801 sq metres, was offered on a revenue-share model with a lease tenure of 99 years. The reserve price for the plot was fixed at Rs 9.93 billion, with a permissible floor space index (FSI) of 4.05. The auction attracted strong participation from leading real estate developers, reflecting sustained demand for well-located urban land parcels. Dineshchandra R Agrawal Infracon Pvt Ltd emerged as the highest bidder with an offer of Rs 22.5 billion. Sobha Realty quoted Rs 12.32 billion, while the Lodha Group submitted a bid of Rs 11.61 billion. Officials said the bids have been opened, but the final selection will be made after detailed evaluation of technical and financial feasibility. Located along the railway line near Mahalaxmi railway station, the land parcel enjoys strong connectivity via Dr E Moses Road and Shakti Mill Lane. It is also close to the Science Centre Metro Station and offers access to key commercial and business districts in south and central Mumbai. Real estate experts said the bidding response highlights developers’ focus on premium land parcels with long-term development potential. A senior consultant said the transaction underscores the willingness of developers to commit significant capital for strategically located railway land with clear development norms and long lease tenure. Another industry analyst noted that the wide gap between the reserve price and the highest bid signals strong confidence in Mumbai’s prime micro-markets. With limited land availability and robust connectivity, Mahalaxmi remains attractive for both residential and mixed-use developments, driving aggressive bidding, the analyst added. Officials said the outcome reinforces RLDA’s strategy of monetising railway land assets through transparent bidding mechanisms and long-term leases, while maximising value from prime urban locations.