New Launch - India Real Estate Report 2026.

What is slum rehabilitation in India?

Slum rehabilitation in India is a government and developer-driven process of replacing informal, substandard slum settlements with permanent, formal housing for slum dwellers typically by leveraging the development potential of the land through cross-subsidization with commercial or free-sale housing.

How Slum Rehabilitation Works in India

  • Slum identified and residents surveyed and verified
  • Developer selected (through tender or negotiation) to undertake rehabilitation
  • Free housing units built for eligible slum dwellers (typically 269–300 sq ft carpet area)
  • Free-sale component built alongside sold at market rates to fund the project
  • Slum dwellers receive free housing with legal title
  • Developer profits from free-sale housing as compensation for building the free units

Major Slum Rehabilitation Programmes in India

  • SRA (Slum Rehabilitation Authority), Maharashtra: Mumbai's primary slum rehab body
  • PMAY (Pradhan Mantri Awas Yojana) : central government scheme with in-situ slum rehabilitation component
  • Dharavi Redevelopment Project : Mumbai's landmark, Asia's largest slum redevelopment (Adani Group)
  • BSUP (Basic Services for Urban Poor) : under JNNURM
  • Rajiv Awas Yojana : for slum-free cities

Slum rehabilitation is one of the most complex and consequential interventions in urban real estate it is simultaneously a housing programme, a social justice initiative, and a commercial real estate opportunity. The most successful projects are those that treat the dignity and aspirations of slum residents as equally important as the commercial viability of the development.

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