Mumbai's Transformation: Third and Fourth Cities to Boost $1.5 Trillion MMR Economy
Maharashtra Chief Minister Devendra Fadnavis envisions the development of 'third' and 'fourth' Mumbai, aiming to transform the Mumbai Metropolitan Region (MMR) into a $1.5 trillion economy within a decade.
MumbaiReal EstateInfrastructureEconomyDevelopmentReal Estate MumbaiAug 15, 2025
Fadnavis made these remarks at a CREDAI-MCHI event, marking a leadership transition where Sukhraj Nahar, chairman of Nahar Group, was appointed as the body’s 18th president for 2025–2027. He expressed confidence that Mumbai has the potential to surpass Dubai in size and quality.
However, Fadnavis also raised concerns about the rising housing prices in Mumbai. Despite the government's efforts to offer multiple concessions to the real estate sector, including premium reductions, home prices continue to climb. He noted, “Over the last 10 years, whenever we've claimed that housing will be affordable, the price of housing has increased in Mumbai. Even after reducing the premium, the housing prices have not come down. We expected that building Coastal Road or Atal Setu would lower the price, but instead, it has skyrocketed after construction.”
Fadnavis highlighted significant infrastructure developments, such as the Bandra Versova sea link, which is 60% complete and expected to be finished within the next two years. Plans are also in place to extend the road to Dahisar and further to Virar. He emphasized the MMR's potential to become a $1.5 trillion economy, underscoring the government's commitment to ease of doing business. The World Bank has recognized these efforts, but Fadnavis acknowledged that more work is needed.
CREDAI-MCHI announced the new management committee for the next two years, marking a pivotal phase for the real estate ecosystem in the MMR. Sukhraj Nahar, the new president, stated, “Our sector has always built Mumbai's skyline. Now, we must also build its soul. Mission CARES is our declaration to the government, home buyers, and our own conscience, that we will develop with empathy, digitize with purpose, green our cities with urgency, and ensure every home is accessible and dignified.”
Keval Valambhia, COO of MCHI-CREDAI, emphasized the importance of single-window clearances, rationalized premiums, and tech-led approvals. PropTech will enable AI-driven project tracking and blockchain-backed compliance, making the process faster and more transparent. He noted, “Every rupee saved in friction is a rupee that builds scale, trust, and better homes. Because at the end, building better homes is about building a stronger India together.”
The new leadership has outlined an ambitious but pragmatic roadmap for the next 24 months. This includes the establishment of a PropTech Lab to accelerate innovation adoption, the creation of an Affordable Housing Innovation Cell (AHIC), and the launch of mobile skilling labs across the MMR region. These initiatives aim to ensure that the development of ‘third’ and ‘fourth’ Mumbai is inclusive and sustainable, benefiting all residents of the region.
Frequently Asked Questions
What is the vision for the 'third' and 'fourth' Mumbai?
The vision for the 'third' and 'fourth' Mumbai is to develop these areas as new economic growth hubs with world-class infrastructure, high-speed connectivity, and an innovation city designed to rival global centers. This is part of the plan to transform the Mumbai Metropolitan Region (MMR) into a $1.5 trillion economy within 10 years.
Why are home prices in Mumbai still rising despite government concessions?
Despite government efforts to offer multiple concessions to the real estate sector, including premium reductions, home prices in Mumbai continue to rise. This is partly due to the high demand and the impact of major infrastructure projects like the Coastal Road and Atal Setu, which have increased property values.
What significant infrastructure projects are underway in Mumbai?
Significant infrastructure projects underway in Mumbai include the Bandra Versova sea link, which is 60% complete and expected to be finished within the next two years. Plans are also in place to extend this road to Dahisar and further to Virar.
What is CREDAI-MCHI's Mission CARES?
CREDAI-MCHI's Mission CARES is a declaration to the government, home buyers, and the real estate sector to develop with empathy, digitize with purpose, green cities with urgency, and ensure every home is accessible and dignified. This mission aims to build a more inclusive and sustainable future for Mumbai.
What are the key initiatives outlined by the new leadership of CREDAI-MCHI?
The new leadership of CREDAI-MCHI has outlined several key initiatives for the next 24 months, including the establishment of a PropTech Lab to accelerate innovation adoption, the creation of an Affordable Housing Innovation Cell (AHIC), and the launch of mobile skilling labs across the MMR region.
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