Maharashtra's ₹70,000 Crore Push for Affordable Housing by 2030
The government of Maharashtra has announced a significant investment of ₹70,000 crore to construct 3.5 million affordable homes by 2030. This ambitious plan is part of the ‘My House, My Right’ initiative under the Maharashtra Housing Policy 2025, aimed at providing housing for economically weaker sections and low-income groups. According to a report by JLL and Naredco, this initiative is expected to significantly boost affordable housing in the top two metro regions: the Mumbai Metropolitan Region (MMR) and Pune.
The need for this investment is underscored by the recent trends in the housing market. Karan Singh Sodi, Senior Managing Director (Mumbai MMR and Gujarat) and Head of Alternatives, India, JLL, noted that premium housing has surged from around 43% to 59% of total launches between 2022 and H1 2025, while affordable housing under ₹50 lakh has declined from about 15% to just 12% during the same period. This shift highlights the growing affordability gap in the housing market.
The post-Covid housing surge has been significant, with combined annual sales in Mumbai and Pune nearly doubling from 46,528 units (2016-2019) to 1.05 lakh units (2022-H1 2025). Mumbai has recorded around 28% capital appreciation between 2019 and H1 2025, with peak growth of over 10% in 2023. Pune, on the other hand, has registered gains of about 20%. Despite this positive trend, the decline in the share of mass housing in new launches underscores the need for strategic intervention.
India’s leading metropolitan regions are witnessing a shift in urban development, with emerging affordable housing corridors becoming catalysts for sustainable, inclusive growth. Rather than being viewed as urban sprawl, peripheral expansion is being strategically leveraged by city planners to create well-planned, connected communities that can serve as engines of metropolitan growth. The report by JLL and Naredco emphasizes that this approach is essential for addressing the housing needs of the growing population while promoting economic development.
The policy establishes a balanced incentive framework for stakeholders, providing developers with 2.5 floor space index (FSI) for senior housing, 15% commercial FSI for student housing, and 1% GST across all segments. This framework creates investment-grade opportunities in senior living, student housing, and rental markets while enabling financially viable brownfield redevelopment of Mumbai’s cessed buildings and slums. Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, highlighted that the policy aims to promote inclusive growth and revitalise stalled projects.
Prashant Sharma, President of Naredco Maharashtra, emphasized that the policy comes at a critical juncture when residential markets are experiencing unprecedented momentum yet facing structural challenges of affordability and inclusivity. The initiative is expected to address these challenges and pave the way for a more equitable and sustainable housing market in Maharashtra.
