Mumbai: Deonar Dumping Ground Biomining Plan To Unlock 110 Hectares; Eastern Suburbs Set For Real Estate Boost

Mumbai, April 23: A long-pending clean-up of the city’s oldest landfill is set to reshape both the environment and real estate landscape of the eastern suburbs, with the Municipal Corporation of Greater Mumbai proposing large-scale bioremediation of the Deonar dumping ground and Maharashtra Coastal Zone Management Authority granting clearance in its March 25 meeting.

Massive biomining plan to reclaim land

The civic body has placed a plan to process 185 lakh tonnes of legacy waste through biomining and bioremediation, aiming to reclaim nearly 110 hectares of land at the site in Mankhurd-Govandi. Established in 1927, the Deonar landfill is among India’s oldest, with waste mounds rising up to 35–40 metres.

CRZ norms and environmental safeguards

The project, presented before the Maharashtra Coastal Zone Management Authority, involves excavation, segregation, and scientific disposal of waste, along with restoration of land. While parts of the site fall under CRZ categories, authorities have clarified that only legacy waste removal will be undertaken within CRZ areas, with no mangrove cutting permitted.

Waste generation and need for clean-up

Mumbai currently generates about 6,500 tonnes of solid waste daily, with a portion still reaching Deonar. Officials said the clean-up is mandated under Solid Waste Management Rules and is aimed at addressing long-standing environmental and health risks.

Real estate impact and market outlook

Urban planners and real estate experts say the transformation could trigger a shift in the area’s market dynamics. Pankaj Kapoor, founder and managing director of Liases Foras, noted that property prices in surrounding areas such as Govandi, Mankhurd, and Chembur currently range between Rs 20,000 and Rs 30,000 per sq ft, depending on location and project quality.

“With the removal of the dumping ground and improved infrastructure, the area could see demographic upgradation and increased developer interest,” he said, adding that its strategic location—linking Mumbai, Navi Mumbai, and Panvel—makes it a strong candidate for future growth. Besides, the area will see the real estate uptick on lines of Malad Mind Space, which was also once a dumping ground," he said.

Gradual transformation expected

Similar sentiments were expressed by Abhishek Kiran Gupta, CEO and Co-Founder of CRE Matrix. He said, “It is unfortunate that a city like Mumbai has had a dumping ground located so centrally, in close proximity to prime areas such as Chembur and near key business districts like BKC. The proposed shift of the Deonar landfill, alongside large-scale redevelopment initiatives like Dharavi, is therefore a welcome move.

From a real estate perspective, this transition is expected to unlock significant potential for affordable and mid-income housing. The relocation of families, particularly from Dharavi, will gradually increase population density in the area, paving the way for a broader ecosystem comprising retail high streets, schools, healthcare facilities, and other social infrastructure.

However, the market re-rating is likely to be gradual. Since initial habitation will largely involve rehabilitation housing, price appreciation may remain measured in the short term. A more substantial re-rating could take over a decade, once the dumping ground is fully cleared and resettlement is complete.

In the long run, as private developers begin to explore redevelopment opportunities and available land parcels, the area could see property values rise by 25–30%, moving closer to prevailing rates in Chembur,” Gupta explained.

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Future redevelopment potential

The clean-up is expected to pave the way for redevelopment, potentially unlocking large land parcels in a part of the city long constrained by environmental concerns.

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