India’s housing market stands at a critical inflection point. While luxury home sales are breaking records and property prices continue to rise, the foundation of inclusive growth — affordable housing — is steadily eroding. The risk is no longer theoretical. India is fast heading towards a two-tier housing market, where luxury homes flourish while millions of middle- and lower-income households are priced out of ownership altogether.

Union Budget 2026 could prove decisive. Without strong, targeted policy intervention, the affordability gap will only widen, making homeownership increasingly unattainable for a vast section of urban India.

The Market Paradox: Growth That Masks a Crisis

At first glance, residential real estate appears robust. According to ANAROCK Research, the total value of homes sold in 2025 touched nearly ₹6 lakh crore, marking a 6% year-on-year increase. Institutional investments in real estate also surged, reaching USD 8.9 billion in 2024, a sharp 51% rise over the previous year.

However, these headline numbers conceal a deeper structural problem.

While the value of sales rose, the number of homes sold declined by 14% in 2025. The growth is being driven almost entirely by the luxury segment. Luxury housing sales to HNIs, NRIs, and wealthy professionals jumped 170% in 2024, transforming homes into investment instruments and inflation hedges.

Affordable housing, meanwhile, has fallen into a prolonged slump.

Affordable Housing: From Backbone to Bottleneck

Affordable housing’s share of the residential market has plunged from 38% in 2019 to just 18% in 2025, according to ANAROCK Research. This is not a cyclical slowdown but a structural collapse.

In 2018, over 52% of new homes launched in India’s top seven cities were priced below ₹50 lakh. By 2025, that figure has shrunk to just 17%. In metros, homes under ₹50 lakh now account for only one in six new launches.

The consequence is a rapidly widening urban housing shortage. India currently faces a deficit of 9.4 million urban homes, a number that could escalate to 30 million units by 2030 without corrective policy measures.

The Homebuyer Squeeze Is Real

For ordinary households, affordability has deteriorated sharply. The EMI-to-income ratio for homebuyers has risen from 43% in 2020 to nearly 60% today, well above sustainable thresholds. For middle-income families, the ratio has climbed from 28% to 40% over the same period, driven by rising property prices and higher interest rates.

ANAROCK’s latest Consumer Sentiment Survey reveals the scale of the problem. In Bengaluru alone, 42% of prospective buyers seeking homes under ₹1 crore have been priced out, despite demand for budget housing rising 13% year-on-year.

This is not a matter of preference but of compulsion — buyers simply cannot afford what the market offers.

Why Developers Are Abandoning Affordable Housing

The crisis is not demand-driven. It is rooted in the economics of real estate development.

Affordable housing typically offers 10–12% margins, while luxury and premium projects yield 25–30% or more. With land prices soaring, construction costs for steel, cement, and skilled labour remaining elevated, and approval timelines growing longer, affordable projects have become financially unviable.

Developers are responding rationally. Many have rebranded mid-income projects as premium offerings or exited the affordable segment altogether.

Compounding the issue is an outdated policy framework. The current definition of affordable housing — capped at ₹45 lakh, a threshold fixed in 2017 — bears little resemblance to today’s market realities. In Mumbai’s peripheral areas, a modest 600 sq ft apartment now costs ₹60–75 lakh. Pune, Bengaluru, and Delhi-NCR face similar mismatches.

Worse, developers building within this outdated cap are denied critical tax benefits.

The Missing Incentive: Section 80-IBA

The 100% tax holiday under Section 80-IBA, which played a catalytic role between 2016 and 2021, expired four years ago and has not been revived.

During its tenure, Section 80-IBA bridged the margin gap between affordable and mid-income housing, encouraging widespread developer participation. Its absence has sharply curtailed new launches.

Each year without this incentive potentially leaves 1.5 million households unable to transition into formal homeownership, increasing financial exclusion and informal housing growth.

A time-bound revival of Section 80-IBA, applicable to projects approved over a 24–36 month window, would be fiscally defensible and immediately impactful.

Infrastructure: The Silent Catalyst

Where policy has lagged, infrastructure has advanced. Metro rail expansions, expressways, ring roads, airports, and logistics corridors have consistently unlocked new housing markets.

Cities like Bengaluru, Hyderabad, NCR, and Pune demonstrate a clear pattern: infrastructure precedes real estate growth. Improved connectivity opens peripheral areas, attracts developers, and makes housing more affordable through land availability.

Budget 2026 must accelerate last-mile urban infrastructure, particularly metro extensions, suburban rail, and peripheral connectivity, to expand the affordable housing footprint.

Redefining Affordability for Urban India

The ₹45 lakh affordability cap is no longer viable. Budget 2026 should revise these thresholds based on city-specific realities:

• Mumbai & MMR: ₹85 lakh
• Delhi-NCR, Bengaluru, Pune, Hyderabad: ₹75 lakh

These limits reflect actual land and construction costs, not luxury creep. Crucially, carpet area norms must remain unchanged to prevent misuse.

Raising the price cap while retaining size limits could double the affordable housing supply, increasing its share of new launches from 18% to over 40%.

Strengthening Homebuyer Support Through CLSS

The Credit-Linked Subsidy Scheme (CLSS), reintroduced under PMAY-U 2.0, remains underutilized. Budget 2026 should strengthen it by:

• Increasing subsidy rates to offset higher interest costs
• Raising loan limits to ₹8–10 lakh for EWS/LIG and ₹15–18 lakh for MIG
• Simplifying disbursement to ensure faster, frictionless delivery

An annual CLSS outlay of ₹10,000–15,000 crore could support 1.5–2 million first-time buyers over five years — a direct, targeted intervention.

Budget 2026: A Defining Moment

India’s housing market stands at a crossroads. One path leads to deepening inequality — luxury homes for the wealthy and shrinking ownership for the middle class. The other promises balanced, inclusive growth powered by affordable housing, infrastructure, and smart incentives.

The policy tools are known. The need is urgent. Budget 2026 must act decisively, or the cost of inaction will be borne by millions of Indian families locked out of homeownership.

Also Read: 35 Lakh Homes, ₹50 Lakh Crore Investment: Maharashtra Unveils Massive Housing Push for MMR

The post How Budget 2026 Can Revive Affordable Housing in India appeared first on Square Feat India.

The funds will directly benefit 33,403 eligible beneficiaries belonging to the General category (Other than SC/ST) across various municipal corporations, municipal councils, nagar panchayats, and gram panchayats in the state, enabling them to construct individual pucca (permanent) houses.

Key Details from the GR

The GR follows approvals issued by the Ministry of Housing and Urban Affairs (MoHUA), Government of India (vide orders dated 25 September 2025 and 18 December 2025), which granted Mother Sanction for 41,155 beneficiaries amounting to ₹246.93 crore central share under SLS Code MH-688 (BLC – Individual House Construction, General category).

After accounting for 125 duplicate/repeated entries, the final eligible beneficiaries stand at 41,030, with the adjusted central share of ₹246.18 crore.

The Maharashtra Government, in line with the scheme’s funding pattern (60% Centre + 40% State), has now approved release of the matching state share and partial disbursement to 33,403 beneficiaries (first tranche/phase).

Break-up of Funds Released:

• Central Share (60%): ₹200.418 crore
• State Share (40%): ₹133.612 crore
• Total: ₹334.03 crore (Rupees Three Hundred Thirty-Four Crore and Three Lakh only)

Accounting Heads:

• Central share: 2216 – Housing → 22163428 (PMAY-U 2.0 – Individual House Construction – Centre Share 60%)
• State share: 2216 – Housing → 22163437 (PMAY-U 2.0 – Individual House Construction – State Share 40%)

Disbursement Mechanism

Funds will be transferred through the SNA-SPARSH system (Single Nodal Account – System for Public Financial Management and Accountability) directly to beneficiaries or implementing agencies.

All implementing agencies (Municipal Corporations, Municipal Councils, Nagar Panchayats, etc.) have been directed to:

• Complete 4-SLS Code mapping and e-Hastakshar procedure on the SNAP portal
• Ensure funds are used exclusively for house construction/enhancement
• Strictly follow financial guidelines, audit norms, and Finance Department instructions

New accounting heads were created via supplementary demands in the Winter Session 2025, and re-appropriation was approved as per Finance Department communication dated 05 January 2026.

District-wise & Town-wise Beneficiary Distribution

The GR includes a detailed annexure listing 33,403 beneficiaries across 337 urban/semi-urban local bodies. Some highlights from the list (figures in beneficiaries and amount in lakh):

• Highest beneficiaries:
  • Hingoli Municipality – 965
  • Bid Municipality – 729
  • Purna Municipality (Parbhani) – 676
  • Jafrabad Nagar Panchayat (Jalna) – 975 (noted in full list)
• Examples:
  • Ahilyanagar (Ahmednagar) district towns: Multiple municipalities with 20–150 beneficiaries each
  • Amravati: Achalpur (644), Anjangaon (306)
  • Gadchiroli: Armori (545), Desaiganj (309)
  • Washim: Karanja (283)
  • Yavatmal: Darwha (362), Yavatmal (317)

(Full list covers all districts including Akola, Aurangabad, Bhandara, Buldhana, Chandrapur, Dhule, Gondia, Jalgaon, Jalna, Kolhapur, Latur, Nagpur, Nanded, Nandurbar, Nashik, Osmanabad, Parbhani, Pune, Raigad, Ratnagiri, Sangli, Satara, Sindhudurg, Solapur, Wardha, Washim, and Yavatmal.)

Significance of the Move

PMAY-U 2.0, launched in 2024–25 for the next five years, aims to provide pucca houses with basic amenities to all eligible urban poor families who do not own a house. The BLC component allows beneficiaries to construct or enhance their own homes on their land with central and state assistance (typically ₹1.5–2.5 lakh per unit, depending on location and norms).

This first major fund release under PMAY-U 2.0 in Maharashtra is expected to accelerate house construction in smaller towns and municipal areas, benefiting economically weaker sections in the General category.

The GR is digitally signed and available on the official website www.maharashtra.gov.in with unique code 202601131827022309.

Beneficiaries are advised to contact their local Municipal Council/Nagar Panchayat or Urban Development Authority for verification, geo-tagging, and further process.

Also Read: Maharashtra Implements ‘SNA-SPARSH’ System for Faster Fund Transfers under PMAY (Urban) and PMAY 2.0

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The move comes after sustained objections from mill workers’ unions, representations to the government, and political pressure over a clause that was widely seen as harsh and unfair.

What the Government Changed

In a Government Resolution issued on 15 March 2024, the state had approved housing for eligible workers from 58 closed or sick textile mills in Mumbai and their legal heirs. However, Clause 17 of that resolution stated that:

If a mill worker or heir refused the house offered, their housing application would not be considered again.

This effectively meant a one-time refusal led to a permanent loss of housing rights, regardless of reasons such as location, size, or suitability of the dwelling.

Following strong opposition, the government has now issued a corrigendum GR dated 29 December 2025, officially deleting Clause 17.

Why This Decision Matters

With this correction:

• Eligible mill workers or their heirs will not lose their housing rights permanently if they reject a particular allotment
• Their applications can still be considered in future allotment cycles
• Workers will no longer feel forced to accept unsuitable housing out of fear

The change restores flexibility and fairness to a long-pending housing promise made to Mumbai’s textile workers.

Scale of the Mill Workers’ Housing Issue

The mill workers’ housing programme is one of Mumbai’s largest labour-linked housing initiatives. Nearly 98,600 mill workers have been identified as eligible for homes in the Mumbai Metropolitan Region (MMR).

Despite this, actual allotments over the years have been limited, with only a fraction of eligible workers receiving homes through earlier MHADA allotment exercises. Many families have waited for decades since the collapse of Mumbai’s textile industry in the early 1980s.

Against this backdrop, any rule that risked permanent exclusion was seen as particularly severe.

Unions Welcome the Rollback

Mill workers’ unions had raised strong objections to the clause during meetings with the government in mid-2025, arguing that it punished workers for exercising choice and ignored ground realities such as distance from workplaces, medical needs, or family size.

The deletion of the clause is being viewed as a major relief and a recognition of the workers’ long-standing concerns.

What This GR Does — and Does Not Do

Removes a punitive condition
Protects future eligibility of mill workers
Makes the scheme more humane

Does not announce new houses
Does not expand eligibility
Does not immediately allot flats

The broader housing scheme remains unchanged, but its implementation is now less rigid.

Bigger Implications for Mumbai Housing Policy

At a time when Mumbai faces acute housing stress and land scarcity, the amendment signals a more sensitive approach to legacy labour housing issues. It also highlights how sustained public pressure can lead to course correction in policy.

How quickly homes are now allotted — and whether the scheme gains momentum — will be closely watched.

The post Maharashtra Govt Reverses Harsh Rule on Mill Workers’ Housing Allotment — “No More Lifetime Ban for Rejecting an Offered Home” appeared first on Square Feat India.

Luxury Drives the Boom, But Affordable Housing Falters

The report reveals that India’s housing value growth is being fuelled almost entirely by the luxury segment.
Apartments priced above ₹2 crore recorded a 24% jump in sales, while ultra-luxury homes above ₹10 crore grew 40% YoY.
However, this top-heavy growth hides a worrying reality — sales volumes across the country remained flat (0% YoY), indicating that fewer people are buying homes even as prices rise.

“The surge in high-value transactions propelled the total sales value to ₹8.27 lakh crore, masking flat unit sales volume,” said Pankaj Kapoor, Managing Director, Liases Foras.
“Meanwhile, affordable and mid-segment homes saw declines of up to 13% and 7%, showing that the market’s growth is now heavily concentrated at the top.”

Construction Slowdown: The Silent Crisis

Perhaps the most alarming finding is that the actual pace of construction has slowed sharply, widening the gap between promises and deliveries.
According to Liases Foras, the ratio of constructed supply to total marketable supply has fallen from 75% in 2017 to just 57% in 2025.

“This gap signals slower revenue recognition for builders, higher execution risks, and potential project delays,” said a spokesperson for Liases Foras.
“Builders are committing more projects than they can deliver, meaning the current boom in sales isn’t being matched by actual housing stock on the ground.”

This slowdown could lead to project bottlenecks, delayed handovers, and liquidity pressure if not addressed swiftly — especially for homebuyers awaiting possession in under-construction projects.

Mumbai Tops Sales, NCR Faces the Highest Risk

The report highlights strong regional contrasts:

• Mumbai Metropolitan Region (MMR) leads with 26% of India’s total housing sales value and 8% growth in unit sales YoY.
• National Capital Region (NCR) ranks second in value but faces the highest internal stress — with 45% of its unsold inventory classified as stalled projects.
• Tier-2 cities saw a 12% fall in sales volume, though new supply levels remained stable.

Market Has Likely Peaked

After a record FY2024–25, Liases Foras now believes the market has hit its peak. Sales volumes have already declined 3% in Q1 and 1% in Q2 of FY26, pointing to possible stagnation ahead.

“India’s housing cycle appears to be nearing saturation,” the report concludes, adding that luxury demand alone cannot sustain long-term growth without broader affordability and faster construction.

Also Read: Buying a House? Beware! These Real Estate Projects Are Up for De-registration

The post 📰 Homebuyers Beware: India’s Housing Boom May Have Peaked — Construction Delays Raise Red Flags appeared first on Square Feat India.

The sector, which currently contributes about 7% to the GDP, could account for 14–20% of India’s economy by 2047, making it one of the largest employment and growth engines under the Viksit Bharat – Amrit Kaal roadmap.

A Multi-Trillion Dollar Real Estate Future

India’s infrastructure expansion, urbanization, and demographic shifts are set to unleash a new wave of growth across housing, offices, retail, industrial, and emerging asset classes like senior living and data centers.

Key projections from the Colliers–CII report include:

• Market growth: From USD 0.3 trillion today to USD 5–10 trillion by 2047 — a 20X jump.
• GDP share: Real estate to contribute 14–20% of India’s GDP by 2047.
• Urban population: Around 40% of Indians will live in cities in the coming years.
• Office demand: To stabilize at 70–75 million sq ft annually, led by Global Capability Centers (GCCs).
• Warehousing demand: Expected to touch 30–40 million sq ft annually.
• Residential demand: Could double from 0.5 million to 1 million housing units per year by 2047.
• Retail expansion: Over 1,500 malls across Indian cities by 2047.
• Data centers: Capacity to grow from current levels to 10 GW by 2047.

Tier II & III Cities: The Next Real Estate Hotspots

Cities such as Lucknow, Kochi, Indore, Jaipur, Coimbatore, and Bhubaneswar are emerging as the new engines of real estate growth. Improved connectivity, expressways, and industrial corridors are transforming these smaller cities into vibrant economic hubs.

By 2047, India could have nearly 100 cities with over 1 million residents, driving both housing and commercial growth beyond metros.

“Expressways and industrial corridors are unlocking new growth corridors and transforming Tier II & III cities into future-ready urban centers,” said Harleen Kaur, Deputy Secretary, Ministry of Road Transport and Highways.

Residential Market to See a Mega Shift

Homebuyers can expect more choices, better quality, and diverse formats as the housing market evolves. The report predicts:

• Affordable and mid-segment housing will continue to dominate.
• Luxury and niche housing for HNIs and NRIs will rise in metros and holiday destinations.
• Redevelopment projects in Mumbai, Delhi NCR, and Bengaluru will redefine urban skylines.
• Wellness and senior-living projects will gain traction as India’s median age rises to 35–40 years.
• Plotted developments, villas, and spiritual city homes will appeal to end-users seeking lifestyle-driven housing.

“Policy measures like RERA, PMAY, and SWAMIH Fund have strengthened the housing ecosystem, improving transparency and access to financing,” said Pradeep Aggarwal, Chairman, Signature Global India Ltd.

Commercial, Industrial, and Retail Boom Ahead

The report highlights sustained momentum across commercial and industrial sectors:

• Office space: Grade A supply to cross 2 billion sq ft by 2047, powered by hybrid work and GCC demand.
• Warehousing: Stock to exceed 2 billion sq ft by 2047, driven by e-commerce, logistics, and manufacturing growth.
• Retail: Malls to evolve into lifestyle and experience destinations; Tier II cities to witness surging mall development and retail REITs will formalize the segment.

“Tier II cities like Coimbatore, Indore, and Kochi are emerging as dynamic commercial hubs,” said Badal Yagnik, CEO & MD, Colliers India.

Alternative Assets: The New Frontier

India’s real estate maturity will also be marked by explosive growth in emerging asset classes:

• Data centers: Expected to grow 10X by 2047, supported by AI, 5G, and digitalization.
• Senior living: Likely to expand 30X as life expectancy and nuclear families rise.
• Co-living spaces: Could grow 10X driven by the young workforce and flexible lifestyles.

These segments are already attracting strong institutional and foreign investor interest due to diversification and higher returns.

The Road to 2047: Building the Future of Urban India

India’s real estate story over the next two decades will be defined by:

• Rapid urbanization and infrastructure augmentation.
• Greater tech adoption and AI-driven planning.
• Shift toward sustainable and green buildings.
• Strong policy support and investor confidence.
• Balanced growth between metros and emerging cities.

As India moves toward its centenary year of independence, the sector’s expansion from USD 300 billion to up to USD 10 trillion will not only transform skylines but also create millions of jobs and new living paradigms for citizens.

Also Read: Affordable Housing Gets a Boost as Maharashtra Tweaks Sand Policy; Shorter Leases Aim to Curb Over-Extraction

The post India’s Real Estate to Become a ₹800 Lakh Crore Powerhouse by 2047 — Tier II Cities to Drive the Next Big Boom appeared first on Square Feat India.

The Maharashtra government has approved the implementation of the SNA-SPARSH (System of Integrated Quick Transfers) framework for effective execution of the Pradhan Mantri Awas Yojana (Urban) and PMAY (Urban) 2.0 schemes.

This move is aimed at ensuring faster, transparent, and real-time transfer of Central funds for housing projects through direct integration with the Reserve Bank of India (RBI) systems. The decision aligns with the Central Government’s push for a modernized, technology-driven fund management structure.

From SNA to SNA-SPARSH: A Shift Toward Real-Time Efficiency

The new system replaces the existing Single Nodal Agency (SNA) model with the SNA-SPARSH model, following the Government of India’s directive dated July 13, 2023.

Under this framework, Central and State cash management systems are integrated using three major digital platforms:

• Public Financial Management System (PFMS)
• State Integrated Financial Management Information System (IFMIS)
• RBI’s e-Kuber system

The unified setup allows for real-time, traceable, and quicker fund transfers for Centrally Sponsored Schemes (CSS) like PMAY, reducing administrative delays and leakages.

Dedicated RBI Accounts for Maharashtra’s PMAY and PMAY 2.0

As per the Government Resolution (GR) issued by the Housing Department, new independent drawing and disbursing accounts have been opened with the Reserve Bank of India for both PMAY (Urban) and PMAY 2.0.

These accounts will handle funds for various scheme components such as Affordable Housing in Partnership (AHP), Beneficiary-Led Construction (BLC), In-Situ Slum Redevelopment (ISSR), and Capacity Building, Social Audit, and IEC activities.

PMAY (Urban) — Managed by MHADA

• Nodal Agency: Maharashtra Housing & Area Development Authority (MHADA), Mumbai
• Finance Controller: Drawing & Disbursing Officer (DDO) No. 8101710009
• RBI Accounts: Six separate accounts created for PMAY (Urban) components
• Date of account activation: Between February and October 2025

PMAY (Urban) 2.0 — Managed by Housing Department PMU

• Nodal Agency: State-Level Project Management Unit (PMU), Housing Department, Mantralaya, Mumbai
• Under Secretary & Joint Chief Officer: DDO No. 8101710010
• RBI Accounts: Four accounts for PMAY 2.0 sub-components
• Date of account activation: September 12, 2025

The accounts were opened with consent from the Finance Department and the Accountant General of Maharashtra.

Objective: Faster, Accountable, and Transparent Fund Flow

By implementing SNA-SPARSH, Maharashtra joins a select group of states that have migrated to this next-generation financial management architecture. The key goals include:

• Real-time visibility of fund utilization across all project levels
• Elimination of idle funds and duplication
• Faster disbursement to beneficiaries and implementing agencies
• Stronger financial governance and audit trail

Officials stated that this will significantly enhance efficiency in executing housing projects under PMAY (Urban) and PMAY 2.0—particularly important as Maharashtra leads in urban housing demand and beneficiary-linked construction projects.

Also Read: Relief For MHADA Redevelopment And PMAY Projects

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Mumbai, November 4, 2025:
In a major boost to affordable housing for unorganised workers, the Maharashtra Government has approved a ₹16.93 crore waiver on premium and other related charges for a 30,000-unit housing project under the Pradhan Mantri Awas Yojana (Urban) at Kumbhari village, South Solapur taluka.

The Cabinet has also sanctioned the waiver of ₹8.05 lakh in accumulated non-agricultural (NA) taxes and development fees owed by various housing societies associated with the Rayner Federation, paving the way for expedited housing construction for low-income families in the district.

Massive PMAY Project to House 30,000 Workers

The Solapur housing project — one of the largest under PMAY (Urban) for unorganised sector workers in Maharashtra — will be developed over 21 hectares of land spread across survey numbers 74, 75, 76/1, 77, 262/2, 262/4, 639/2, and 639/3 in Kumbhari.

The project aims to provide affordable, permanent housing for informal sector workers, including daily wage earners and labourers, who have long faced housing insecurity.

Premium Waived to Accelerate Construction

The waiver of the ₹16.93 crore unearned income (nazrana) and non-agricultural conversion premium was granted under Sections 40 and 117(6) of the Maharashtra Land Revenue Code, 1966, following Cabinet approval on November 4, 2025.

According to the order, the land transfer premium will be charged at a nominal rate of ₹1 per sq. m., in line with the Revenue and Forest Department’s 2016 policy (GR dated September 19, 2016) for social housing and public welfare projects.

Relief on Pending NA Taxes for Housing Societies

In addition to the major premium waiver, the government has written off ₹8,05,224 in pending non-agricultural tax arrears for six cooperative housing societies working under the Rayner Federation and associated builders.

This measure aims to reduce the financial burden on developer societies and expedite project completion.

Policy Context: Boost for Housing for Informal Workers

Officials said the move reflects the state’s continued focus on inclusive housing and aligns with the Pradhan Mantri Awas Yojana (Urban) goal of “Housing for All”. Solapur has been identified as a priority district due to its large population of informal workers.

The waiver is expected to accelerate construction, reduce project costs, and enable faster handover of homes to eligible beneficiaries — contributing to the state’s affordable housing targets for 2026.

Also Read: PM to handover largest PMAY Project comprising of 30k Homes

The post Maharashtra Waives ₹16.9 Crore Premium for PMAY Housing Project for Unorganised Workers in Solapur appeared first on Square Feat India.

Delegation Reviews Key Projects

Led by Okamura Tomohito, Director of UR’s Global Affairs Department, the delegation was received by MHADA Vice President and CEO Sanjeev Jaiswal (IAS). The visitors examined ongoing housing, redevelopment, and cluster development initiatives, including Growth Hub projects in Mumbai.

Jaiswal briefed the group on major schemes, such as the B.D.D. Chawls redevelopment in central Mumbai, which will deliver modern two-bedroom units to 16,000 families. He also highlighted the Motilal Nagar project in Goregaon—poised to be India’s second-largest redevelopment—offering homes of around 1,600 sq. ft. each.

Cluster Redevelopment Draws Interest

The Japanese team expressed particular interest in the Kamathipura cluster redevelopment, a project to modernize the historic area while providing free 500 sq. ft. homes to nearly 8,000 families and preserving heritage elements.

Other initiatives discussed include Punjabi Colony at GTB Nagar, Siddharth Nagar (Patrachawl) in Goregaon, Abhyudaya Nagar, Poonam Nagar in Jogeshwari, Sardar Vallabhbhai Patel Nagar in Andheri, Worli Adarsh Nagar, and Bandra Reclamation. These projects are expected to add nearly 600,000 new homes to Maharashtra’s housing stock.

Potential for India-Japan Collaboration

Jaiswal described MHADA’s role in addressing Mumbai’s housing shortage through large-scale redevelopment, noting opportunities for collaboration with UR, a government-funded entity with expertise in urban housing.

Okamura praised Maharashtra’s efforts to create a smart, inclusive city and reaffirmed Japan’s commitment to supporting India’s urban development goals. He indicated UR’s interest in future joint projects on redevelopment and cluster initiatives in Mumbai.

Also Read: Naigaon BDD May See Fresh Tenders

The post Japanese Delegation Explores Housing Redevelopment Ties with MHADA in Mumbai appeared first on Square Feat India.

The announcement was made by Deputy Chief Minister and Housing Minister Eknath Shinde at the MHADA Konkan Board computerized lottery draw held in Thane, where 5,354 tenements and 77 plots were allotted through a transparent digital process.

₹50 Lakh Crore Investment for 35 Lakh Homes

Maharashtra is targeting the construction of 35 lakh homes statewide in the next five years, fuelled by a ₹50 lakh crore investment pipeline through both public and private sector participation.

The state is also working towards the PM Awas Yojana (Urban) target of two crore homes, with an emphasis on housing for working women, senior citizens, and rental housing options to address urban housing demand.

Shinde highlighted that the Central Government’s GST reduction on housing has further lowered costs, offering relief to homebuyers and boosting construction momentum.

30 Lakh Homes in MMR by 2030

Under the MMR Growth Hub Plan, the government has set a goal of 30 lakh new homes in MMR by 2030, with MHADA directly or indirectly delivering about 8 lakh homes.

The massive response to the Konkan Board lottery — 1,58,424 applications for 5,354 homes — reflects rising public trust in MHADA’s transparent allotment systems, Shinde noted. He instructed MHADA to maintain quality standards and ensure projects are completed within stipulated timelines to meet this ambitious target.

Acceleration of Pending Redevelopment Projects

The government has directed MHADA, CIDCO, MMRDA, MIDC, and the Brihanmumbai Municipal Corporation (BMC) to focus on completing pending slum rehabilitation and redevelopment projects. This includes several long-delayed schemes that are now being fast-tracked under the revised housing policy.

Key redevelopment projects expected to contribute around two lakh homes in the next five years include:

• BDD Chawls
• Sindhi refugee buildings at Sion Koliwada
• Kamathipura redevelopment
• Abhyudaya Nagar (Kalachowki)
• Motilal Nagar (Goregaon)
• Siddharth Nagar (Patrachawl)
• Sardar Vallabhbhai Patel Nagar (Andheri)
• Bandra Reclamation
• Adarsh Nagar (Worli)
• Jogeshwari PMGP Poonam Nagar

These projects are expected to unlock large tracts of underutilized urban land, paving the way for affordable and mid-income housing.

Strong Track Record and Mill Worker Housing

MHADA Vice President and CEO Sanjeev Jaiswal highlighted that this was the fourth computerized lottery held by the Konkan Board in the last three years, allotting a total of 13,500 tenements during this period.

Across all regional boards — Pune, Nashik, Chhatrapati Sambhajinagar, and Nagpur — MHADA has allotted 41,500 tenements in the same timeframe.

Additionally, nearly 20,000 mill workers have already been allotted homes, and eligibility for around one lakh mill workers and their heirs has been finalized to speed up future allotments.

Also Read: RBI Monetary Policy – Can the Housing Market Absorb Another Hike?

The post 🏡 35 Lakh Homes, ₹50 Lakh Crore Investment: Maharashtra Unveils Massive Housing Push for MMR appeared first on Square Feat India.

Policy Tweak to Support Affordable Housing

The 10% discounted sand quota for Pradhan Mantri Awas Yojana (PMAY) and other government housing schemes will continue, ensuring that affordable housing projects receive sand at concessional rates.

Under the earlier system, contractors were required to supply 10% of their excavated sand at a nominal price to PMAY projects—often absorbing the cost themselves. This discouraged participation in auctions and led to supply bottlenecks.

The new policy changes this by revising the “upset price” calculation. Now, upset price will be determined as:

90% of total excavable sand × prevailing market price

This ensures the discounted quota is factored in upfront, protecting contractor margins while maintaining concessional supply for affordable housing. It’s expected to keep construction costs stable for government-backed projects, benefiting low- and middle-income homebuyers.

Shorter Lease Periods for Environmental Protection

One of the most notable reforms is the reduction of sand auction lease periods from 2–3 years to just 1 year for both river and creek sand blocks.

Earlier, contractors often over-extracted sand after the first year, leading to:

• Depletion of riverbeds,
• Illegal mining beyond approved limits, and
• Revenue loss for the state.

By capping leases at 1 year, the government aims to:

• Improve environmental monitoring,
• Prevent over-extraction and stockpiling,
• Reset auction prices annually to reflect market conditions.

Centralized e-Auctions for Transparency

The policy introduces annual e-auctions to bring greater transparency and efficiency:

• For river sand, one combined e-auction per sub-division will be held annually.
• For creek sand, the Maharashtra Maritime Board will conduct block-wise e-auctions.

This centralized approach is expected to curb cartelisation, reduce manipulation, and ensure fair competition among bidders.

Key Policy Changes at a Glance

Why It Matters for the Common Man

For homebuyers, especially those looking at PMAY or EWS housing, this policy ensures that project costs remain contained, as sand remains available at concessional rates.

For individual home builders, annual auctions and transparent pricing could mean more stable sand prices and less dependence on black-market sand, which often inflates construction costs.

Environmentally, shorter leases are expected to reduce over-mining pressure on river systems, aligning the policy with sustainable resource use.

Also Read: Why Are Thousands Rushing to Apply for the MHADA Konkan Lottery

The post 🏠 Affordable Housing Gets a Boost as Maharashtra Tweaks Sand Policy; Shorter Leases Aim to Curb Over-Extraction appeared first on Square Feat India.