The Railway Land Development Authority (RLDA) has received its highest-ever bid of Rs 22.50 billion for a 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, spread over about 2.67 acres or 10,801 square 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, while the permissible floor space index (FSI) stands at 4.05, making it one of the most attractive redevelopment opportunities in a prime urban location.The auction witnessed strong participation from leading real estate developers, underscoring sustained demand for well-located land parcels in Mumbai. Dineshchandra R Agrawal Infracon emerged as the highest bidder with an offer of Rs 22.50 billion. Sobha Realty placed a bid of Rs 12.32 billion, while the Lodha Group quoted Rs 11.61 billion. While financial bids have been opened, the final award will be subject to detailed evaluation of the technical and financial feasibility of the proposals, officials said.Situated along the railway corridor near Mahalaxmi railway station, the site enjoys strong connectivity via Dr. E Moses Road and Shakti Mill Lane. It is also located close to the Science Centre Metro Station and offers easy access to key commercial and business districts in south and central Mumbai.Real estate experts said the bidding response highlights developers’ appetite for premium urban parcels with long-term development potential. “This transaction underlines the willingness of developers to commit capital for well-located railway land with clear development norms and long lease tenure,” said a senior real estate consultant.Another industry analyst noted that the significant gap between the reserve price and the highest bid reflects strong confidence in Mumbai’s prime micro-markets, particularly in areas with limited land availability and robust connectivity.Officials said the outcome reinforces RLDA’s strategy of monetising railway land assets through transparent auctions and long-term leases, while maximising value from scarce urban land.News source: The Free Press Journal