L&T Realty acquires land rights in Mumbai's Lower Parel for ₹448 crore

L&T Realty acquires land rights in Mumbai's Lower Parel for ₹448.6 crore to develop a commercial office project in one of the city's prime micro-markets

L&T Realty Developers Limited, a part of the engineering conglomerate Larsen & Toubro (L&T), has acquired land rights in Mumbai’s Lower Parel for ₹448.6 crore to develop a premium, grade-A commercial office building.

 

According to the deal-related documents accessed via Propstack, a real estate data analytics firm, L&T has signed a deed of assignment, acquiring the land rights from AVA Smart City LLP through a deal registered on January 9, 2026. It will pay ₹300 crore in cash, while the remaining consideration will be settled through an area-sharing arrangement. 

 

The sharing arrangement includes 55,000 square feet of Real Estate Regulatory Authority (Rera) carpet non-residential or commercial space, along with proportionate car parking spaces to be handed over to AVA Smart City by L&T.

 

 

With this deal, L&T will get development rights for the land spanning approximately 5,413.08 square meters or about 1.34 acres on which stands a structure known as ‘Khatri Estate’. A floor space index (FSI) of 3.0 has been considered for the valuation of the property. 

 

Once built, the single tower will comprise three basements, a ground floor, six podium levels, and 28 office floors with efficient floor plates of approximately 14,000 square feet of carpet area. The campus will offer premium features such as a creche, business lounge, and F&B outlets.

 

Anupam Kumar, chief executive officer and managing director of L&T Realty, said, “The L&T Realty Innovation Campus at Lower Parel has been envisioned as a future-ready workplace. Tapping into the BFSI micro-market of Lower Parel in the financial capital of the country, this development enjoys a central position with strong corporate presence, unparalleled connectivity, robust social infrastructure, and ease of access to premium residential catchments.”

 

With a construction timeline of approximately 36 months, L&T Realty plans to lease the building to top-tier corporates, creating a high- quality, long-term rental annuity.

 

“This outright land acquisition marks yet another significant step in the company’s strategic direction for future growth, moving beyond collaborations and into direct land purchases”, Kumar added.

 

The property is located on Elphinstone Road, where the Elphinstone Bridge is being reconstructed by the Mumbai Metropolitan Region Development Authority (MMRDA), replacing the 125-year-old British-era structure with a modern double-decker bridge by 2027.

 

The bridge is being reconstructed as a part of the Sewri-Worli Connector – a 4.5-kilometre elevated corridor designed to link Mumbai Trans Harbour Link, Bandra-Worli Sea Link, and Coastal Road, creating a network for east-west movement. MMRDA is also the special planning authority for the redevelopment of 19 buildings in the vicinity of the bridge.  

 

Meanwhile, L&T recently initiated consolidation of its realty business into L&T Realty Properties, a move analysts believe could pave the way for a potential listing. JM Financial estimates L&T Realty could achieve sales of ₹8,500 crore and earnings before interest, taxes, depreciation, and amortisation (Ebitda) of ₹4,700 crore by fiscal year 2030, valuing the business at around ₹58,000 crore.

 

L&T Realty has delivered premium residential, commercial and mixed-use developments across Mumbai, Navi Mumbai, Bengaluru, NCR, Chennai and Hyderabad. The company operates in the premium real estate segment and has a portfolio with a development potential of 65 million square feet, spanning upscale residential communities, grade-A commercial spaces, and high-street retail developments.

 

Lower Parel is a prime commercial as well as residential real estate micro-market in Mumbai. Office rents in the area increased by 12.5 per cent year-on-year (YoY) to ₹225 per square foot as of December 2025, while residential prices stood around ₹58,000-59,000 per square foot, up from ₹55,000-56,000 per square foot as of December 2024.