Maharashtra's ₹70,000 Crore Push to Boost Affordable Housing by 2030
Maharashtra plans to invest ₹70,000 crore to build 3.5 million affordable homes by 2030, focusing on the Mumbai Metropolitan Region (MMR) and Pune, to address the growing affordability gap in the housing market.
Affordable HousingReal EstateMaharashtraUrban DevelopmentHousing PolicyReal Estate MaharashtraSep 26, 2025
The investment is crucial as new peripheral clusters are emerging as viable alternatives to expensive city centers. According to a report by JLL and Naredco, the real estate market in Maharashtra has seen a significant shift, with premium housing increasing from around 43 per cent to 59 per cent of total launches between 2022 and H1 2025. Meanwhile, affordable housing under Rs 50 lakh has declined from about 15 per cent to just 12 per cent during the same period.
Karan Singh Sodi, Senior Managing Director (Mumbai MMR and Gujarat) and Head, Alternatives, India, JLL, highlighted the post-Covid housing surge, noting that combined annual sales in Mumbai and Pune have nearly doubled from 46,528 units (2016–2019) to 1.05 lakh units (2022–H1 2025). Mumbai has seen around 28 per cent capital appreciation between 2019 and H1 2025, with peak growth of over 10 per cent in 2023. Pune, on the other hand, has registered gains of about 20 per cent.
The decline in mass housing share in new launches underscores the need for strategic intervention, leading to the launch of this landmark affordable housing initiative. 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 policy establishes a balanced incentive framework for stakeholders, providing developers with 2.5 floor space index (FSI) for senior housing, 15 per cent commercial FSI for student housing, and 1 per cent GST across all segments. This policy 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 to promote inclusive growth and revitalise stalled projects.
Prashant Sharma, President, Naredco Maharashtra, emphasized that the policy comes at a critical juncture when residential markets are experiencing unprecedented momentum but facing structural challenges of affordability and inclusivity. The initiative is expected to address these challenges and create a more balanced and sustainable housing market in Maharashtra.
Overall, the Maharashtra government’s ₹70,000 crore investment in affordable housing is a significant step towards ensuring that all residents have access to affordable and quality housing, contributing to the overall economic and social well-being of the state.
Frequently Asked Questions
What is the total investment planned by the Maharashtra government for affordable housing?
The Maharashtra government plans to invest ₹70,000 crore to build 3.5 million affordable homes by 2030.
What is the ‘My House, My Right’ initiative?
The ‘My House, My Right’ initiative is part of the Maharashtra Housing Policy 2025, aimed at providing housing solutions for economically weaker sections and low-income groups.
Which regions are the primary focus of this affordable housing initiative?
The primary focus of this affordable housing initiative is the Mumbai Metropolitan Region (MMR) and Pune.
What incentives are provided to developers under the new policy?
Developers are provided with 2.5 floor space index (FSI) for senior housing, 15 per cent commercial FSI for student housing, and 1 per cent GST across all segments.
How has the real estate market in Maharashtra changed in recent years?
The real estate market in Maharashtra has seen a significant shift, with premium housing increasing from 43 per cent to 59 per cent of total launches between 2022 and H1 2025, while affordable housing under Rs 50 lakh has declined from 15 per cent to just 12 per cent.
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