Maharashtra Unveils 2025 Housing Policy: 5 Key Highlights for Affordable Housing
The Maharashtra government has approved the 2025 Housing Policy, aiming to construct 35 lakh affordable homes by 2030. This initiative is expected to significantly impact the real estate market, especially in Mumbai.
Affordable HousingReal EstateMaharashtraMumbaiHousing PolicyReal Estate MumbaiMay 22, 2025
Here are five key takeaways from the newly announced policy:
1. First comprehensive housing policy in nearly 20 years
The new policy—Majhe Ghar, Majha Adhikar (My Home, My Right)—marks Maharashtra’s first major housing policy update since 2007. Despite several draft proposals over the years, no policy was finalised until now. Officials said the update was long overdue, especially in light of the evolving housing needs post-COVID-19. “This roadmap was essential because the world has changed significantly, and housing demands have shifted,” Valsa Nair Singh, additional chief secretary, housing department, told reporters.
2. Self-redevelopment boost
According to data from CREDAI-MCHI, the apex body of real estate developers, over 25,000 buildings across the Mumbai Metropolitan Region (MMR) are eligible for redevelopment, with an estimated project value of more than ₹30,000 crore. Recognising this massive potential, the Maharashtra government has given a strong push to self-redevelopment in its newly approved housing policy. To support the initiative, the state has allocated ₹2,000 crore and proposed the formation of a dedicated cell to assist cooperative housing societies. This cell will provide end-to-end support—including guidance on planning, funding, developer selection, and project execution—empowering societies to undertake redevelopment independently.
3. Government land to be used for affordable housing
The Maharashtra government has set an ambitious target of generating an affordable housing stock of 35 lakh units by 2030. Under the new policy, the government aims to create a land bank for residential use by 2026. This initiative will be implemented in coordination with the Revenue Department, Forest Department, Maharashtra State Road Development Corporation, Water Resources Department, and the Industries Department, among others. Real estate developers believe this initiative will significantly impact the future supply of affordable housing in a city like Mumbai, where the Maharashtra Housing and Area Development Authority (MHADA) currently offers only a limited number of affordable homes through its lottery scheme.
4. Stalled real estate projects to get a push
The new policy also seeks to boost slum rehabilitation by adopting a cluster redevelopment approach. To revive stalled real estate projects—including those involving slum rehabilitation—the Maharashtra government plans to introduce incentives under the cluster redevelopment scheme. This is expected to stimulate the real estate market and provide much-needed housing solutions for those in need.
5. Incentivises senior living, student housing and promotes walk to work
The new housing policy backs the Prime Minister’s ‘walk-to-work’ vision by promoting residential development near employment hubs, particularly in industrial zones. To support this, the policy mandates that 10% to 30% of land allocated for amenity plots in industrial areas be reserved for residential purposes. Additionally, the Maharashtra government has eased norms related to taxation, stamp duty, and Floor Space Index (FSI) for developers and homebuyers involved in senior living and student housing projects—whether for sale, purchase, or lease. This is expected to make these types of housing more accessible and affordable.
Frequently Asked Questions
What is the target of the 2025 Housing Policy in Maharashtra?
The target of the 2025 Housing Policy in Maharashtra is to construct 35 lakh affordable homes by 2030 with an investment outlay of ₹70,000 crore.
How long has it been since Maharashtra's last major housing policy update?
The last major housing policy update in Maharashtra was in 2007, making this the first comprehensive update in nearly 20 years.
What is the self-redevelopment initiative in the new policy?
The self-redevelopment initiative allocates ₹2,000 crore and forms a dedicated cell to assist cooperative housing societies in planning, funding, and executing redevelopment projects.
How will the government support affordable housing?
The government aims to create a land bank for residential use by 2026, coordinating with various departments to generate an affordable housing stock of 35 lakh units by 2030.
What are the incentives for senior living and student housing projects?
The policy eases norms related to taxation, stamp duty, and Floor Space Index (FSI) for developers and homebuyers involved in senior living and student housing projects.
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