Maharashtra plans ₹70,000 cr push to boost affordable housing by 2030

Maharashtra will invest Rs 70,000 crore under the 2025 housing policy to build 3.5 million affordable homes by 2030, focusing on Mumbai Metropolitan Region and Pune

The government of Maharashtra has planned to invest Rs 70,000 crore to build 3.5 million affordable homes by 2030 across the state. The move is expected to boost affordable housing in the top two metro regions — the Mumbai Metropolitan Region (MMR) and Pune — according to a report by JLL and Naredco.

 

The investment has been planned under the ‘My House, My Right’ initiative of the Maharashtra Housing Policy 2025 for economically weaker sections and low-income groups, as new peripheral clusters emerge as viable alternatives to expensive city centres.

 

“In Maharashtra, premium housing surged from around 43 per cent to 59 per cent of total launches between 2022 and H1 2025, while affordable housing under Rs 50 lakh fell from about 15 per cent to just 12 per cent,” said Karan Singh Sodi, senior managing director (Mumbai MMR and Gujarat) and head, alternatives, India, JLL.

 

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 recorded around 28 per cent capital appreciation between 2019 and H1 2025, with peak growth of over 10 per cent in 2023, while Pune registered gains of about 20 per cent. 

 

The decline in mass housing share in new launches highlights the need for strategic intervention, prompting the 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 report noted.

 

“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. The 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,” said Dr Samantak Das, chief economist and head of research and REIS, India, JLL.

 

Prashant Sharma, president, Naredco Maharashtra, said the policy comes at a critical juncture when residential markets are experiencing unprecedented momentum yet facing structural challenges of affordability and inclusivity.