Maharashtra Unveils 2025 Housing Policy: 5 Key Highlights to Transform Affordable Housing
Maharashtra's new 2025 Housing Policy aims to construct 35 lakh affordable homes by 2030, with a significant investment of ₹70,000 crore. The policy includes several key initiatives to boost self-redevelopment, use government land for housing, and promote walk-to-work residential areas.
Affordable HousingReal EstateMaharashtraHousing PolicyRedevelopmentReal EstateMay 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. These incentives are expected to attract more developers and investors, thereby accelerating the completion of these projects.
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. These measures are designed to make these types of housing more accessible and affordable for the target demographics.
Frequently Asked Questions
What is the main goal of Maharashtra's 2025 Housing Policy?
The main goal of Maharashtra's 2025 Housing Policy is to construct 35 lakh affordable homes by 2030, with a significant investment of ₹70,000 crore.
How does the policy support self-redevelopment?
The policy supports self-redevelopment by allocating ₹2,000 crore and forming a dedicated cell to assist cooperative housing societies with planning, funding, developer selection, and project execution.
What is the significance of the land bank initiative?
The land bank initiative aims to create a significant amount of affordable housing stock by 2026, coordinated with various government departments to ensure efficient land use.
How will the policy help revive stalled real estate projects?
The policy plans to introduce incentives under the cluster redevelopment scheme to attract more developers and investors, thereby accelerating the completion of stalled real estate projects, including those involving slum rehabilitation.
What measures are taken to promote senior living and student housing?
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, making these types of housing more accessible and affordable.
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