Dharavi Rehab Construction Has Begun at Matunga. What It Means for Property Around It

Dharavi has been "about to be redeveloped" for most of my working life. So when the first rehab towers actually break ground, it's worth slowing down and looking at what has really been announced, and what hasn't.

What started on 12 October 2026?

According to Business Today, Adani Enterprises director Pranav Adani performed the bhoomi poojan for the first rehabilitation housing on a 22-acre site in Matunga. The project company is Adani Navbharat Developers Pvt Ltd, the special purpose vehicle for the Dharavi Redevelopment Project.

• 10 towers with 10,432 rehab apartments and 1,379 commercial and industrial units.
• Eligible residents under the in-situ scheme get 350 sq ft homes.
• Towers of 37 to 39 floors, each with 10 to 12 passenger lifts and two fire lifts.
• The developer will maintain the buildings for 10 years after handover, and 10% of commercial space in each building is reserved to fund upkeep.

When will Dharavi residents get their homes?

The reported handover schedule to the state's Dharavi Redevelopment Project and SRA is:

Residents from Sectors 6 and 1 are reported to be among the first to get homes.

Will Dharavi redevelopment raise property prices nearby?

Here's my honest take. In the short run, very little changes for a flat in Sion or Matunga. Construction sites bring dust, traffic and noise for years. The value story is longer: if a dense, informal neighbourhood in the middle of the city becomes planned housing with roads, open space and services, the areas around it, from Sion and Matunga to Mahim, Dharavi's edge with BKC, and Dadar, become easier to live in. That tends to show up first in rents and tenant demand, and only later in prices.