Maharashtra's Bold Step: New Housing Policy Aims to Provide Homes for All and Eliminate Slums
Maharashtra's new housing policy, 'My House, My Right,' focuses on affordable housing, slum rehabilitation, and public-private partnerships to achieve a slum-free state by 2033.
MaharashtraHousing PolicyAffordable HousingSlum RehabilitationPublicprivate PartnershipsReal Estate MaharashtraJul 24, 2025
The government anticipates an investment of Rs 70,000 crore during the policy's implementation. The primary goal is to construct 35 lakh houses over the next five years, with a long-term target of 50 lakh houses over ten years. A comprehensive and statewide survey will be conducted to assess current and future housing needs, expected to be completed by 2026. This survey forms a crucial part of the policy framework.
The policy outlines a comprehensive slum rehabilitation and redevelopment program. It aims to redevelop old buildings to improve living conditions, optimize land use, and transform slums through public-private partnerships. The focus is on inclusive housing, capturing resources from the private market, and creating integrated townships that offer affordable housing with essential services. Priority will be given to low-income groups, senior citizens, women, industrial workers, and students.
To achieve the ambitious target of 50 lakh houses in the next 10 years, the government plans to increase the size of the MahaAwas Fund to Rs 20,000 crore. Existing provisions under the Development Control and Promotion Regulations and Unified Development Control and Promotion Regulations will be strengthened and modified as needed. The State Housing Information Portal (SHIP) will be developed to provide information on housing development through government and private sector partnerships, developers, and state-run undertakings.
The policy grants infrastructure status to affordable housing, enabling developers to avail external commercial borrowing (ECB) and FDI for their projects. The affordable housing sector is also eligible for Priority Sector Lending (PSL) from banks and HFCs. Under the 'Walk to Work' concept, 10 to 30 percent of land should be reserved for housing in MIDC (Maharashtra Industrial Development Corporation) areas. This land should be handed over to the appropriate authority at the applicable acquisition price to create adequate housing stock in such areas. The authority can also partner with private industries to provide housing for industrial workers in a PPP model.
The policy proposes to reserve 10 to 15 percent of land suitable for housing projects adjacent to major infrastructure projects like the Samruddhi Expressway and Delhi-Mumbai Industrial Corridor. Green building initiatives will be undertaken to promote sustainable development through eco-friendly practices and certifications. The policy will also address affordable housing for other vulnerable groups, such as senior citizens, working women, students, Project Affected Persons (PAPs), and migrant workers.
Amid the challenges posed by climate change, the policy advocates the construction of resilient and adaptable houses. A range of incentives are proposed, including single-window clearance, one percent GST, floor space index (FSI) up to 2.5 percent, commercial use permitted up to 10 percent of utilized FSI, concession in development charges, waiver of registration and stamp duty charges to operators, reduced property tax for the first ten years of operation, and 100 percent deduction on the profit of operating student housing.
Slum rehabilitation schemes on public land can be implemented in a joint venture by setting up a Special Purpose Vehicle (SPV) and adopting the Dharavi model of 20:80 redevelopment. The Slum Rehabilitation Authority (SRA) will set up a special purpose company in which the SRA should hold a 20 percent stake with voting rights. The planned survey to assess current and future housing needs across all districts will serve as the foundation for future policy-making, enabling data-driven decisions on housing development, resource allocation, and prioritization of infrastructure.
The survey will include an assessment of the existing housing stock, socio-economic profiles of households, and the availability of basic infrastructure and civic amenities. A major focus will be the detailed analysis of housing demand, capturing demands across various income groups and geographical areas. The policy will also facilitate a comprehensive land bank database to identify government-owned land parcels suitable for residential use. A survey will identify and verify government and semi-government land available for construction, with data compiled into a district-wise digital land bank. The SHIP portal will facilitate coordination between state and Central departments, including the PM Gati Shakti initiative, urban local bodies, and infra agencies.
Frequently Asked Questions
What is the main goal of Maharashtra's new housing policy?
The main goal of Maharashtra's new housing policy, 'My House, My Right,' is to provide affordable and adequate housing for all residents and achieve a slum-free state by focusing on economically weaker sections, lower-income, and middle-income segments.
How much investment is expected during the policy's implementation?
The government expects an investment of Rs 70,000 crore during the implementation of the policy.
What is the target for house construction over the next five and ten years?
The policy aims to construct 35 lakh houses over the next five years, with a long-term target of 50 lakh houses over ten years.
What is the 'Walk to Work' concept mentioned in the policy?
The 'Walk to Work' concept involves reserving 10 to 30 percent of land for housing in MIDC areas, ensuring that industrial workers have access to housing near their workplaces.
What incentives are proposed for affordable housing developers?
The policy proposes incentives such as single-window clearance, one percent GST, floor space index (FSI) up to 2.5 percent, commercial use permitted up to 10 percent of utilized FSI, concession in development charges, waiver of registration and stamp duty charges, reduced property tax for the first ten years of operation, and 100 percent deduction on the profit of operating student housing.
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