Real Estate

Maharashtra Affordable Housing Supply Shrinks; Rental Push Needed

By GeoSquare News Desk · Published 2026-10-29

Maharashtra's affordable housing segment is facing a supply squeeze as rising input costs make new projects increasingly difficult to sustain. Developers across Mumbai and Pune are re-evaluating project viability, leaving buyers with fewer budget-friendly options.

Rising costs hit affordable projects

At the Rising Bharat Summit, Niranjan Hiranandani, co-founder of the Mumbai-based Hiranandani Group, said the combined cost of land, construction materials and labour has pushed affordable housing into a challenging zone. With margins under pressure, several developers have slowed launches in the lower-ticket segment.

The impact is visible in the shrinking share of affordable homes in new supply. Buyers looking for homes under the price caps in Maharashtra are now competing for a smaller pool of inventory, especially in the Mumbai Metropolitan Region and Pune.

Industry seeks rental housing push

To address the gap, industry leaders are urging the government to promote rental housing as a viable alternative. They argue that a strong rental ecosystem can reduce the pressure on ownership demand while making housing accessible to a larger workforce.

Developers have called for policy support including tax incentives, single-window clearances and infrastructure status for rental housing projects. For investors, this could open up a new asset class with steady rental yields, while helping cities like Mumbai and Pune manage urban migration more efficiently.