Policy Designed to Bring Unified Vision to Urban Growth

Under the new policy, the Maharashtra Urban Development Department has empowered CIDCO (City and Industrial Development Corporation) and other planning authorities to implement concept-based and iconic development projects. This means large tracts of land will be developed according to a single plan, ensuring integrated infrastructure, seamless public spaces, and globally competitive urban environments.

Previously, developers individually undertook land development and infrastructure work after acquiring lease rights — resulting in inconsistent planning and implementation across different zones. The new model addresses this by designating a single Construction & Development Operator (CDO) for each project area, responsible for end-to-end development according to a unified masterplan.

Construction & Development Operator to Drive Change

The policy mandates a structured and transparent process for selecting a CDO through competitive bidding. The chosen operator will be responsible for:

• Preparing detailed master and infrastructure plans
• Completing construction within a structured timeframe
• Delivering identifiable milestones, including basic utilities and public facilities
• Marketing and selling developed units
• Maintaining infrastructure during the contract period

The total development timeline is spread over 20 years — with key targets such as 75% construction commencement by year 12, and full occupancy certification by year 20 — ensuring sustained focus on progress rather than sporadic building.

Strict Safeguards to Prevent Delays and Ensure Delivery

To make sure developers stick to the plan, the policy includes robust safeguards:

• Timeline targets: Specific stages must be completed within set periods — such as Certificate of Commencement (CC) and Occupancy Certificate (OC) targets
• Financial safeguards: Delays trigger penalties and advance revenue payments to authorities
• Land retention rules: Unbuilt land after project milestones can be reclaimed by the government
• Security deposit: Developers must provide a 10% fixed-fee deposit to guarantee performance

These measures aim to prevent projects from stalling — a common issue in unregulated development landscapes.

Theme-Based Iconic Development — Not Just Construction

A key feature of the policy is its emphasis on theme-based and iconic townships. Rather than random high-rise apartments, development areas will be designed with:

• Iconic architecture and public spaces
• Integrated residential and commercial zones
• Waterfronts, plazas, parks, and civic amenities
• Global-level infrastructure standards

The policy encourages high-quality planning that could include up to 15–25% of the area reserved for special theme elements, creating vibrant, world-class urban environments.

Transparent Two-Stage Bidding for CDO Selection

Project bidders will go through a clear two-stage process:

1. Technical Proposal: Shows design concept, planning capacity, and alignment with the iconic vision.
2. Financial Proposal: Covers revenue sharing, business model, and cash flow plans.

A committee will shortlist and evaluate bidders to ensure that selected CDOs have both the vision and the financial strength to deliver.

Revenue Sharing and Land Transfer Mechanism

Instead of outright selling plots, the policy allows CDOs to sell constructed units only after meeting development milestones. Revenue-sharing mechanisms ensure that CIDCO and other authorities receive their share before units are handed over to buyers.

Land for development will be transferred to the CDO phase-wise — and only if 75% of the previous phase’s construction and sale targets are met. This phased approach prevents stalled land parcels and promotes continuous progress.

A Move Toward Smart, Integrated Cities of Tomorrow

With this policy, the Maharashtra government is signaling a shift from unplanned, ad-hoc construction to coordinated, future-ready urban planning. By combining strict timelines, landmark design principles, and accountability measures, this new approach aims to deliver cities that are not only functional but also attractive and globally competitive.

This policy promises more than buildings — it envisions well-designed, sustainable, and dynamic urban spaces that reflect the aspirations of 21st-century city living.

Also Read: CIDCO Lottery receives so far 10K applications

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The bold initiative comes in response to rapid market “premiumisation” that has left middle and lower-income families priced out. Policymakers are targeting inclusive housing through new clusters on the peripheries of Mumbai and Pune, supported by large-scale infrastructure development.

Why This Matters

• Sales Momentum: Combined annual sales in Mumbai and Pune nearly doubled to 105,332 units (2022–H1 2025)from 46,528 units (2016–2019).
• Price Appreciation: Mumbai saw 28% price growth between 2019 and H1 2025, peaking with over 10% growth in 2023. Pune saw 20% appreciation in the same period.
• Premium vs. Affordable: Share of premium housing (₹1 crore+) launches rose from 43% to 59% between 2022 and H1 2025, while affordable housing (<₹50 lakh) fell from 15% to 12%.

Policy Blueprint: My House, My Right

The State’s “Majhe Ghar, Majhe Adhikar” (My House, My Right) policy sets a clear affordability target.

Key Highlights from the JLL–NAREDCO Report:

Expert Insights

Karan Singh Sodi, JLL:
“Premium housing surged to nearly 60% of launches in Mumbai and Pune, while affordable housing has dropped to just 12%. The INR 70,000 crore plan is designed to bridge this affordability gap by prioritizing inclusivity, sustainability, and transparency.”

Dr. Samantak Das, JLL:
“The Maharashtra Housing Policy 2025 creates investment-grade opportunities not just in affordable housing, but also in senior living, student housing, and rentals—while unlocking redevelopment potential of Mumbai’s cessed and slum areas.”

Prashant Sharma, NAREDCO Maharashtra:
“This policy arrives at a critical juncture. By centering on ‘Majhe Ghar, Majhe Adhikar’, Maharashtra is reshaping urban growth to make it equitable and sustainable for generations.”

Mumbai and Pune: New Growth Corridors

The report outlines four growth corridors each in Mumbai and Pune, with Navi Mumbai, Thane, Vasai–Virar, and Kalyan–Dombivli flagged as priority zones in MMR. Pune’s four-directional growth model highlights clusters in Moshi–Chakan, Wagholi–Charholi, Dhayari–Wadgaon, and Handewadi–Undri.

These corridors, backed by metro, highway, and digital infrastructure, are expected to serve as catalysts for affordable, well-planned communities while creating employment opportunities.

Looking Ahead

The JLL–NAREDCO blueprint underscores Maharashtra’s attempt to balance strong premium housing demand with the urgent need for affordability. By strategically investing in infrastructure and leveraging private participation, Mumbai and Pune could emerge as models of inclusive urban growth in India.

Also Reads: Agami Realty forays into Mumbai’s upscale Real Estate market, inks pact to redevelop MHADA Society in Bandra

The post Mumbai, Pune to See ₹70,000 Cr Affordable Housing Push; 3.5 Million Homes Planned by 2030 appeared first on Square Feat India.

Dr. Hiranandani emphasized the need for targeted measures to address pressing challenges in the housing and infrastructure domains, outlining several key proposals:

1. Increased Funding for Affordable Housing
NAREDCO urged the government to allocate additional funds to the affordable housing segment, which is currently experiencing negative growth. Enhanced funding would stimulate inclusivity and sustainable urban development.

2. Higher Home Loan Tax Deductions
The organization proposed raising the tax deduction limit on home loan interest payments from ₹2 lakh to ₹5 lakh, aiming to make homeownership more affordable and boost market demand.

3. Infrastructure Status for Housing
Granting infrastructure status to the housing sector was identified as a critical step. According to NAREDCO, this move would unlock new investment avenues and position housing as a key pillar of national infrastructure.

4. Urban Infrastructure Development
NAREDCO stressed the importance of improving energy and transportation infrastructure to complement housing development, ensuring sustainable urban growth and enhanced quality of life.

5. Rental Housing Expansion
To address rental affordability, the council recommended removing notional income from house properties held as stock-in-trade, facilitating the creation of a robust rental housing stock in line with the government’s “Housing for All” mission.

6. Incentives for Rental Housing Investment
The council proposed deleting provisions that discourage rental housing investment by restricting loss set-offs from house property income.

7. Safe Harbour Adjustments for Ready Reckoner Rates
NAREDCO suggested increasing the safe harbour for differences between Ready Reckoner rates and market values from 10% to 25% to better align with market realities.

8. Rationalized Tax Rates and Capital Gains Reforms
Recommendations included reducing individual tax rate slabs from 37% to 25% to boost disposable income, lowering dividend taxation for resident investors to 10%, and reforming capital gains tax rules to encourage the purchase of multiple homes.

9. Slum Redevelopment Incentives
The council proposed targeted initiatives to accelerate slum redevelopment, particularly in cities like Mumbai, with a vision of eliminating urban slums within five years.

Dr. Hiranandani underscored the transformative potential of these measures, stating that their implementation would drive housing demand, enhance affordability, and contribute to the nation’s economic growth. NAREDCO has called on the government to prioritize these recommendations in the upcoming budget to ensure the long-term stability and prosperity of the real estate sector.

Also Read: Hiranandani Communities launches 1mn sqft of Residential Sector at Hiranandani Fortune city, township in Panvel in FY 23 

The post NAREDCO Submits Budget Recommendations to Boost Real Estate Sector appeared first on Square Feat India.

Bengaluru, the Silicon Valley of India, is synonymous with technological expertise and economic growth. Its skyline, replete with towering skyscrapers and vast residential tracts, speaks volumes of its booming real estate sector driven by India’s thriving IT and corporate sectors. The past few years have seen Global Capability Centres (GCCs) emerge as a dominant factor in Bengaluru’s real estate dynamics.

GCCs are the Offshore Development Centres of global enterprises. These centres, driven by government policies, have highly impacted the residential and commercial real estate sectors of Bengaluru, besides raising the city’s global status. Bengaluru was the first choice for setting up GCCs in India because of its skilled manpower, innovative infrastructure, and cosmopolitan culture.

Favourable Government Policies Driving GCC Expansion

The Karnataka Government’s GCC Policy, which aims to set up 500 new GCCs by 2029, has been significantly driving the state’s urban growth. Besides bringing multinationals from all around the globe to Karnataka, the GCC policies of the state have driven significant infrastructure investments. This includes the enhancement of the Bangalore Metro and the Peripheral Ring Road, as well as the upcoming knowledge, wellbeing, and innovation city – KWIN city. These projects are aimed at connecting and improving infrastructure, thus making Bengaluru a desirable hub for residential and commercial investment.

Additionally, the policy is expected to create 3.5 lakh jobs, which will bring countless professionals to the city.

Also, the government’s efforts towards sustainable urban growth have promoted developers to embrace green building practices and eco-friendly designs. These initiatives align with the sustainability goals supported by multinational corporations operating GCCs, thus creating an appealing link between policy and real estate development.

Thriving Commercial Realty Driving Demand for Residential Spaces

The growth of GCCs has propelled Bengaluru’s commercial real estate sector. Industry reports show that between 2020 and 2023, Bengaluru accounted for 26.4 million square feet of GCC leasing, or 37% of total GCC leasing, thus making Bengaluru the largest contributor in this particular segment. Also, demand for commercial space has gone up, along with rental values as multinational companies are increasingly setting up large facilities. Occupancy percentages in business districts are also on the rise. A report by CREDAI and CRE Matrix says that the supply of high-end office space in six major cities has exceeded 700 million square feet, with Bengaluru accounting for the largest share at 28%.

Such high demand for commercial properties is creating ripples in the residential market as well. Let’s see how:

The GCC influx in Bengaluru has driven considerable economic growth by generating high-paying jobs and attracting affluent expatriates and skilled professionals. These employees, mainly mid-level and senior professionals, look for upscale living spaces to stay nearby, which in turn has increased the demand for luxurious apartments, gated communities, and smart homes designed with modern amenities in Bengaluru. The growing popularity of smart homes with installed IoT-enabled devices, energy-efficient systems, and advanced security solutions resonates with the tech-savvy lifestyle of GCC employees.

Residential Real Estate Trends

Evolving employee preferences have transformed the residential real estate scene in Bengaluru. Developers are now focused on developing high-end projects in North Bengaluru and districts like Whitefield, Sarjapur Road, and Outer Ring Road, which are conveniently located near major IT and GCC hubs. These areas provide proximity to workplaces besides offering serene and well-structured living environments. Consequently, integrated townships and mixed-use developments, which integrate residential, commercial, and recreational spaces, have gained immense popularity in such regions. For GCC professionals, it means convenience, connectivity, and improved living conditions.

Co-living spaces are equally gaining traction in Bengaluru, particularly among younger professionals and expatriates. Besides being affordable and flexible, these shared accommodations offer a sense of community, thus making them ideal for Bengaluru’s migrant workforce. Furthermore, the hybrid work model is also influencing the residential realty sector. More professionals look for homes that can also serve as productive workspaces. Consequently, developers are designing properties with dedicated office areas, high-speed internet, and ergonomic features to cater to these requirements.

Opportunities in Residential Real Estate Going Forward

GCCs’ influence on Bengaluru’s residential real estate market will increase in the coming years. The city will gain further recognition as a real estate hotspot as it solidifies its standing as a top spot for global capability centres. What’s more, the infrastructure development driven by GCCs has led to rising property prices in significant locations. Thus, developers in Bengaluru are reaping the benefits of the growing housing demand through innovative construction technologies and design principles to cater to the tastes and preferences of GCC employees. Smart city concepts, ranging from integrated digital infrastructure to sustainable practices, are also becoming part and parcel of residential projects. These developments address the requirements of professionals in the GCCs besides positioning Bengaluru as a global city offering premium living experiences. Due to its focus on urban planning, sustainable growth, and policy support, the city is well-positioned to maintain its competitive edge.

Future Prospects: Bengaluru as a Global Hub

With GCCs projected to generate an economic output of $50 billion by 2029, Bengaluru’s real estate market is set to grow exponentially. Property prices in prime GCC locations, such as North Bengaluru, are already seeing significant appreciation, averaging over ₹7,000 per square foot. These trends make the city a magnet for investors and end-users alike. Continued investment in infrastructure, sustainable development, and innovative real estate solutions should make Bengaluru a hub of excellence not only for global businesses but also homeowners.

Also Read: Bengaluru property values

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