There's a good chance that housing in Mumbai could get cheaper as the Centre approved releasing suburban Mumbai's salt-pan lands, reports CNBC-TV18.

Real estate developers might have a big opportunity coming their way.

With the prime minister having cleared 5,378 acres of salt-pan land in Mumbai to rehabilitate slum dwellers, a lot of land is due to turn free for development. But it is not clear how the land will be allocated or who will develop it.

"The methodology is not stated. There has to be some participation of private developers to help in construction," said Niranjan Hiranandani, MD, Hiranandani Constructions.

So while the government has an option to auction the land, call for a public-private partnership or offer Transfer Development Rights in lieu of developing the land, one thing is for sure, it's bound to affect real estate prices in Mumbai.

"In a 5-7 year period, when the process is in progress, TDR rates will drop, land prices will ease, city housing could become affordable and over all there will be a softening impact," said Akshay Kumar, chairman, Colliers International.

The rehabilitation will, in turn, free up stretches of encroached land, which will clear the way for public infrastructure projects like the Metro Rail Link, Mumbai Urban Transport Projects and expansion of the airport.

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