SRA: To buy or not to buy?

Slum Rehabilitation Authority (SRA) projects are one of the few options that allow people to buy a home at an affordable price in locations where regular property prices are soaring. While SRA projects are often seen as a tool to provide better living conditions to people living in slums, it also provides a great opportunity to people looking for new homes in prime locations.

Factsheet

People living in slum areas need a good living environment such as access to good schools, medical facilities and a home that is well-designed as per their family requirements. SRA projects can create a sense of dignity and ownership for residents while reducing environmental and social challenges in urban areas. Home buyers should consider SRA development while keeping in mind the mix of pros and cons that must be taken into account when evaluating buying a property. Now the question is, should you buy a property in an SRA project or avoid it? Let’s first understand the present situation of SRA projects in Mumbai before unfolding the pros and cons of buying in SRA.

SRA in Mumbai

Under SRA, the Government of Maharashtra has introduced a scheme for the rehabilitation of the slum areas. Under this scheme, slum land is used as a resource and additional floor space index is allowed as incentive that can be sold in the open market for the cross subsidization of the slum rehabilitation project. The SRA scheme has shown promising result by providing homes to people who used to live in the slums and by uplifting the infrastructure around the slum clusters to provide for new plush housing which have a great future potential considering the speed at which these neighbourhoods develop.

How much area is covered by slum clusters in Mumbai?

According to data released by Slum Rehabilitation Authority, Brihan Mumbai, in 2024 there were a total of 2,597 slum clusters in Mumbai. These slum clusters were present in various wards in Mumbai. The total slum area covered by the slums was approximately 33.13 sq kms.

In 2015, SRA identified 3,293 slum clusters, which have decreased to 2,597 in 2024. This shows a significant drop in the area inhabited by slums. SRA projects are gaining momentum, and it is expected that the remaining slum clusters will also join the urbanisation stream in less than a decade. It is time for the average Mumbaikar to look at these projects if they are looking for great value with an eye on the future.

Status of SRA projects in Mumbai

As of Jan 22, 2025, around 2,248 SRA projects are proposed or under development in Mumbai. Some of the SRA projects for which the OC was given to the customers are as shown in the table.

Source: sra.gov.in/en (as on March 13, 2025)

Benefits of buying a home in SRA

SRA allows home buyers to buy property in an area where government-backed initiatives provide attractive value appreciation and ensure sustained community development. The modern construction standards, better security, and efficient connectivity to key urban hubs contribute to a lifestyle upgrade compared to non-SRA developments. Here are some of the important benefits of SRA projects for buyers as well as for the realty sector:

Benefits for home buyers:

• Availability of luxury homes at affordable pricing
• Chance of buying a home in a prime location
• Access to existing infrastructure, such as roads, water supply, and electricity in the urban location
• Investment potential due to strategic locations

Benefits for the realty sector

• Reclaiming land for a planned development
• Eliminating slum areas to improve city aesthetics and urban image
• Supporting sustainable urban growth and reducing overcrowding
• Allowing use of underutilized land
• Job creation

Things you should look for when evaluating a home in SRA projects

1. Clear title with the developer
2. RERA Registration of the project
3. If SRA rehabilitation is happening around the new project, is there a separate entry exit point for the two buildings
4. Explore future development plans of the developer, around the project
5. Explore available infrastructure around the project, such as, metro stations, railway stations, bus stops, hospitals, schools, markets
6. Explore government DP plans around the project (available with most developers)

Home buyers in SRA projects may face difficulties such as related to complex legal processes, unclear property titles, and potential delays in project completion. In some cases, the slums are partially rehabilitated and the SRA buyers have to live in apartments facing the leftover slums or cross the narrow roads passing through remaining slum areas whenever moving in or out of the project. In such a situation people moving into the SRA project may also face security-related issues till the slum is completely rehabilitated.

Should you buy in SRA?

SRA projects are usually based closer to posh localities. People living in SRA homes can get easy access to their work locations and also get access to excellent infrastructure developed in its locality. Public and private partnerships are unfolding a wave of SRA development that is not only unlocking the huge land bank for new realty development but also offering luxurious homes at affordable prices. For example, the Alta Monte project by Omkar Realtors and Developers was developed under the SRA scheme in Malad East. It consists of luxury amenities and gated communities and it is one of the projects that has transformed the perspective in favour of the SRA redevelopment in Mumbai. Avant Group is also emerging as a major player in the SRA projects in western suburbs. SRA projects have the potential to unlock the huge value of a location that has remained stagnant for many years. So, one must not miss the chance if they get an opportunity to buy a home in the SRA project!

-This is a sponsored article.