Maharashtra to Invest Rs 70,000 Crore for 3.5 Million Homes

Mumbai and Pune, two of India's busiest cities, are on the brink of a big change in their housing markets. A new report from real estate firm JLL and industry body NAREDCO lays out a bold plan to make homes more affordable for millions of middle and lower-income families.

The report titled, “Towards ‘Housing for All’ in Maharashtra-The 2025 Policy Blueprint,” highlights how skyrocketing demand has pushed up property prices, but now policymakers are stepping in with a massive Rs 70,000 crore investment. The goal? To create 3.5 million low-cost homes by 2030, mainly for low-income and middle-class groups.

The housing market in these cities has been red-hot since the COVID-19 pandemic eased. Sales have almost doubled. Between 2016 and 2019, Mumbai and Pune together sold about 46,528 homes each year on average. But from 2022 to the first half of 2025, that number jumped to 105,332 units annually. That's a clear sign of growing confidence in the economy and more people wanting to buy homes.

Prices have climbed too. In Mumbai, home values rose by around 28% from 2019 to mid-2025, with the biggest spike—over 10%—in 2023. Pune saw a 20% increase over the same time. This growth shows how attractive these cities are for jobs and living, but it has made buying a home tougher for many.

One big shift is the rise of fancy, high-end homes. Premium properties, those costing Rs 1 crore or more, now make up 59% of new launches in 2022 to mid-2025, up from 43%. On the flip side, cheaper options have shrunk. Mass housing under Rs 1 crore dropped from 57% to 40% of the supply. Even more worrying, truly affordable homes below Rs 50 lakh fell from 15% to just 12%. This trend has left many middle-class families out in the cold, unable to afford city-center living.

That's where the new policy comes in. Called 'My House, My Right,' it's designed to fix this gap. The state government plans to pump in Rs 70,000 crore to build homes for economically weaker sections (EWS) and low-income groups (LIG). It's not just about numbers— the plan focuses on making things fair, green, and reliable. For example, they'll use AI tools on a new State Housing Information Portal (SHIP) to keep everything transparent. This will link up with existing systems like MahaRERA for real estate regulation and PM Gati Shakti for faster infrastructure.

Karan Singh Sodi, a top executive at JLL handling Mumbai and Gujarat, puts it this way, “In Maharashtra, premium housing surged from around 43% to 59% of total launches between 2022 and H1 2025, while affordable housing under INR 5 million plummeted from approximately 15% to just 12% share. The 'My House, My Right' policy addresses this supply-affordability gap through an estimated INR 70,000 crore investment targeting 3.5 million EWS/LIG homes by 2030, emphasizing inclusivity, sustainability, and reliability. The initiative leverages AI-powered transparency via the State Housing Information Portal (SHIP) and integrates with government platforms like MahaRERA and PM Gati Shakti. This is a step in the right direction and towards a better tomorrow.”

The policy isn't stopping at promises. It includes perks for builders to encourage more diverse projects. Developers get extra floor space index (FSI)—up to 2.5 for senior citizen homes and 15% commercial space for student housing. There's also a flat 1% GST on all segments to make things cheaper. This could spark growth in areas like senior living, student digs, and rentals. Plus, it aims to revive stuck projects in Mumbai's old buildings and slums through brownfield redevelopment.

Dr. Samantak Das, JLL's chief economist, sees it as a game-changer, “The Maharashtra State Housing Policy 2025 serves as an economic transformation blueprint that leverages data-driven governance and comprehensive housing strategies to create new markets. It establishes a balanced incentive framework for stakeholders, providing developers with 2.5 FSI for senior housing, 15% commercial FSI for student housing, and 1% 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 revitalize stalled projects.”

Prashant Sharma, head of NAREDCO Maharashtra, adds, “The Maharashtra State Housing Policy 2025 arrives at a critical juncture—when our residential markets are experiencing unprecedented velocity yet facing deep structural challenges in affordability and inclusivity. By prioritizing 'Majhe Ghar, Majhe Adhikar' as its guiding sentiment, this policy doesn't just promise housing targets—it reshapes Maharashtra's urban future, making it more equitable, sustainable, and inclusive for generations to come.”

A key part of this plan is spreading out growth to the edges of the cities, away from pricey centers. In Mumbai's metropolitan region (MMR), four main corridors are set to boom. The Navi Mumbai area (Panvel-Ulwe-Karanjade) has top-notch roads, utilities, and digital links, perfect for businesses. Thane's zone (Ghodbunder Road-Bhayandarpada) has solid transport and high demand. Vasai-Virar (Nalasopara-Naigaon) offers good value for money, drawing young workers. And Kalyan-Dombivli acts as a hub with jobs and affordable prices.

Pune is expanding in four directions too. The northern IT zone (Moshi-Chakan-Punawale) cuts commute times by 40-60% and mixes work with living. The north-eastern corridor (Wagholi-Charholi Budruk-Wadgaon Sheri) has fast job growth and new offices. South-west (Dhayari-Wadgaon Budruk) focuses on planned, green communities. And south-east (Handewadi-Autadwadi-Undri) has ready infrastructure and strong city support.

All this will be backed by big infrastructure spends, like better roads, water, and power. The idea is to turn these outskirts into thriving spots, not just sleepy suburbs. It could create jobs, keep cities growing, and let more people own homes without breaking the bank.

This housing push shows Maharashtra leading the way in smart city planning. While premium homes keep coming for the well-off, the focus on affordable options ensures everyone gets a shot at stability. With strong data and investments, Mumbai and Pune could become examples for other Indian cities facing similar squeezes. It's about building not just houses, but better lives for millions.