Dharavi, one of the most densely populated urban settlements in Mumbai, is set for a major transformation under a massive redevelopment project that aims to create a smart city, modern transport hub and improved public spaces.

According to an HSBC report, the Dharavi Redevelopment Project is one of the largest urban renewal initiatives in Asia and is expected to reshape the lives of more than one million residents.

The project was discussed during the session “Transforming Dharavi: A Model for Inclusive Urban Renewal” at the AdAnnual Conference 2026, where Pranav Adani and Navbharat Mega Developers CEO Anil Sardana shared updates on the ambitious plan.

According to HSBC, the project involves the rehabilitation of around 125,000 homes and the redevelopment of one of Mumbai’s most well-known neighbourhoods.

The report stated: “Dharavi project offers 95 million square feet of redevelopment… it will be a congregation of a smart city, multi-modal transport hub, public space, and rehabilitation of homes.”

Why Is Dharavi Important?

Spread across nearly 600 acres in central Mumbai, Dharavi is home to more than one million people.

The area is also a major economic hub, housing thousands of small businesses involved in pottery, food processing, leather manufacturing and plastic recycling.

For decades, Dharavi has been recognised for its entrepreneurial spirit despite facing challenges related to overcrowding and infrastructure

More Than 125,000 New Homes Planned

A major part of the redevelopment focuses on housing.

According to HSBC, more than 125,000 housing units will be built for residents.

Around half of these homes will be constructed within Dharavi itself, while the remaining units will be developed across six locations in the Mumbai Metropolitan Region.

The goal is to provide safer and better-quality housing while improving overall living standards.

Dharavi To Get Metro Stations, Schools And Green Spaces

The project goes beyond housing and includes major infrastructure upgrades.

Plans include:

A multi-modal transport hub

Three metro stations

Bus depots

Schools

Healthcare facilities

Sports centres

Green spaces

Pedestrian walkways

According to HSBC, the aim is to create a modern urban ecosystem that improves both connectivity and quality of life.

Major Real Estate Opportunity Near BKC

HSBC highlighted the project’s commercial potential as well.

The redevelopment includes 130 million square feet of free-sale area located around five kilometres from Mumbai’s central business district, Bandra Kurla Complex (BKC).

This makes it one of the largest real estate opportunities currently available in Mumbai.

When Will The Project Be Completed?

According to HSBC, the rehabilitation phase is expected to take seven to eight years.

The first building on Indian Railways land is expected to be handed over in December 2026.

Construction of around 30,000 housing units is expected to be underway during FY27.

The company has also committed to providing 10 years of operations and maintenance support for rehabilitated housing units.