Maharashtra CM Fadnavis Addresses Rising Property Prices in Mumbai Despite Infrastructure Boom
Despite significant infrastructure development, housing prices in Mumbai continue to rise, posing affordability challenges. Chief Minister Fadnavis highlights the need for innovative construction technologies and collaboration between developers and the government.
MumbaiProperty PricesInfrastructureRedevelopmentDevendra FadnavisReal Estate MumbaiAug 16, 2025
Over the past decade, Mumbai has witnessed a wave of major infrastructure projects aimed at easing congestion and expanding the city’s boundaries. These include the 21.8-km Mumbai Trans Harbour Link (Atal Setu), the Coastal Road, and the rapid expansion of the metro network. Other key projects like the Navi Mumbai International Airport, the Mumbai–Nagpur Samruddhi Expressway, the upcoming Bandra–Versova Sea Link, and upgrades to the suburban rail network are further reshaping the region’s connectivity and development potential.
Together, these projects have significantly improved connectivity, unlocking new areas for housing and commercial development. Theoretically, this scale of infrastructure expansion should have helped moderate property prices by spreading demand more evenly across the region. However, prices in Mumbai have continued to rise despite these transformative gains, as noted by Fadnavis.
The CM also outlined the government’s long-term growth strategy, which includes the creation of a 'Fourth Mumbai' around the upcoming Vadhavan Port in Palghar district. This new urban center will be supported by substantial infrastructure investments aimed at attracting cutting-edge industries, thereby spurring large-scale housing and economic activity.
Fadnavis credited the developer community for collaborating with the government in shaping the Real Estate (Regulation and Development) Act (RERA) in Maharashtra and in drafting Mumbai’s Development Plan. “It was one of the first times everybody accepted the plan because it was made with industry participation,” he said.
He also underscored the importance of redevelopment projects in reshaping Mumbai, ranging from slum rehabilitation and cluster projects to the BDD chawl redevelopment, which is billed as Asia’s largest urban renewal program, with completion targeted by 2029. To achieve faster results, Fadnavis urged developers to adopt global construction technologies that allow high-rises to be built in record time.
“From Fourth Mumbai to redevelopment at the city’s core, the opportunities are enormous,” Fadnavis said. “But unless we bring speed, affordability, and global standards, the dream of a truly reshaped Mumbai will remain incomplete.”
He encouraged developers to form alliances with the government and even global institutional investors to develop key projects and participate in the transformation of Mumbai through large-scale redevelopment, affordable housing, and the upcoming Third and Fourth Mumbai around the northern periphery of the region.
Frequently Asked Questions
What are the major infrastructure projects in Mumbai?
Major infrastructure projects in Mumbai include the 21.8-km Mumbai Trans Harbour Link (Atal Setu), the Coastal Road, the rapid expansion of the metro network, the Navi Mumbai International Airport, the Mumbai–Nagpur Samruddhi Expressway, the upcoming Bandra–Versova Sea Link, and upgrades to the suburban rail network.
Why are property prices still rising in Mumbai despite infrastructure improvements?
Despite significant infrastructure improvements, property prices in Mumbai continue to rise due to a persistent demand-supply imbalance. The increased connectivity and development potential have not yet moderated prices as expected.
What is the 'Fourth Mumbai' project?
The 'Fourth Mumbai' project is a long-term growth strategy that includes creating a new urban center around the upcoming Vadhavan Port in Palghar district. This center will be supported by substantial infrastructure investments aimed at attracting cutting-edge industries and spurring large-scale housing and economic activity.
How is the government collaborating with developers?
The government has collaborated with developers in shaping the Real Estate (Regulation and Development) Act (RERA) in Maharashtra and in drafting Mumbai’s Development Plan. This collaboration has been key in ensuring industry participation and acceptance of the development plan.
What role do redevelopment projects play in reshaping Mumbai?
Redevelopment projects, such as slum rehabilitation, cluster projects, and the BDD chawl redevelopment (Asia’s largest urban renewal program), play a crucial role in reshaping Mumbai. These projects aim to bring speed, affordability, and global standards to the city’s core.
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