Mumbai’s costliest land deal: RBI at nariman point

The Reserve Bank of India (RBI) has finalized a significant real estate transaction by purchasing a 4.16-acre land parcel in Nariman Point, Mumbai, from the Mumbai Metro Rail Corporation Ltd (MMRCL) for ₹3,472 crore. This acquisition, registered on September 5, 2025, is among the largest institutional land deals in the city this year.

The plot, measuring approximately 16,832 square meters, offers a buildable area of 1.6 million square feet, including 113,000 square feet designated for rehabilitation purposes. It is one of the last substantial tracts available in Nariman Point, a central business district developed in the 1970s and 1980s. The land previously housed offices of political parties such as the Congress, Shiv Sena, and Nationalist Congress Party (NCP) before being vacated to facilitate the construction of the Vidhan Bhavan metro station as part of the underground Metro Line 3 project.

Initially, MMRCL had planned to lease the property through a global bidding process, with a reserve price of ₹5,173 crore. However, in November 2024, the RBI expressed interest in acquiring the land, leading MMRCL to cancel the tender and proceed with a government-to-government sale. This direct transaction was finalized without the legal and procedural complexities typical of open auctions, ensuring a smooth execution.

The proceeds from this sale are expected to support the funding of Metro Line 3 works and assist in repaying loans, including those from the Japan International Cooperation Agency (JICA). For the RBI, this acquisition will facilitate the consolidation of its various offices currently operating from rented premises into a modern, self-owned office complex in Mumbai's premier business district.

This deal underscores the strategic importance of Nariman Point as a commercial hub and reflects the growing demand for prime real estate in Mumbai's central business areas.