Oberoi Realty Emerges Highest Bidder for 11-Acre RLDA Railway Land in Bandra East, Mumbai, at ₹5,400 Crore
Oberoi Realty Wins Railway Land Tender in Bandra East
Oberoi Realty emerged as the highest bidder at ₹5,400 crore for a 99-year lease of 11 acres of prime railway land in Bandra East, Mumbai. The company disclosed this in a filing with the regulatory authority on February 4, 2026.
Land Specifications and Development Potential
The company has participated in bids invited by the Railway Land Development Authority (RLDA) for the grant of a lease to develop around 45,371 square metres (about 11 acres) of the land for a period of 99 years. The land has a floor space index (FSI) potential of around 19.50 lakh square feet. The land parcel is located adjoining the Western Express Highway in Mumbai.
Bid Structure and Financial Terms
The amount represents the Net Present Value (NPV) of payments, including an upfront payment and a revenue share until 2038. ₹247.50 crore is payable within 30 days of the issue of the letter of demand by RLDA, and another ₹247.50 crore within 150 days from the date of issue of that letter. The amounts payable from time to time until the year 2038 are in the form of a 45% share of the higher of the projected gross revenues or actual gross revenues, with this revenue share payable until the total NPV (calculated at a discount rate of 10.75%) of the amounts paid equals ₹4,905 crore. Oberoi Realty will bear the entire cost of development and construction of the project.
Strategic Significance and Market Context
Bandra East is a premium housing market that recorded 627 new sale transactions in 2025 with a gross sales value of ₹2,333 crore. Strategically positioned right next to the Bandra Kurla Complex (BKC), Bandra East has witnessed an incredible surge in residential demand, with buyers looking for premium properties choosing this locality to drastically cut down on daily commuting times. The 3-year appreciation of 44.6% in Bandra East is extraordinary — driven by BKC expansion and the growing white-collar workforce in its business districts.
This acquisition is part of the RLDA's plan to monetize 25 acres in Mumbai's prime locations, targeting ₹8,000 crore in land leases. Communication from RLDA for the next steps in the process is awaited.
About Oberoi Realty
Oberoi Realty is a public company based in Mumbai (India), founded in 1980. For over four decades now, Oberoi Realty has been an insignia of trust, transparency, cutting-edge technology and differentiated service in the Real Estate sector in Mumbai. In 2010, the company got listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Annual revenue of Oberoi Realty is ₹5,470 crore as on March 31, 2025.
In its early years, the company strategically acquired large land parcels across Mumbai, including key developments at Goregaon, Andheri, Mulund, and Juhu, laying the foundation for its future growth. The company strengthened its portfolio through premium office, residential, and mixed-use projects, including Oberoi Prisma, Sky City, and landmark developments in Worli, supported by global partners such as Samsung C&T and The Ritz-Carlton.