The Maharashtra Housing Department has received more than 2,000 suggestions and objections to its draft Housing Policy 2024, which is likely to be presented before the state cabinet in the coming weeks. The feedback spans a wide range of concerns and inputs from developers’ associations, construction industry representatives, flat buyers, and other housing stakeholders.
The draft policy, prepared in October 2024 after a decade-long gap, places a strong emphasis on affordable housing, creating slum-free cities, boosting rental housing, building dedicated homes for senior citizens, and promoting the ‘walk to work’ concept to integrate housing with employment hubs.
Previous attempts at implementing a comprehensive housing policy — in 2015 and 2021 — failed to secure cabinet approval, following the redundancy of the state’s first policy issued in 2007.
An official from the housing department shared, “We are striving to incorporate as many stakeholder recommendations as possible. Developer bodies have requested additional Floor Space Index (FSI) and Transfer of Development Rights (TDR) benefits, along with the reduction of bureaucratic hurdles that delay project approvals.”
However, a major challenge lies in the shortage of urban land banks, which limits the scope for affordable housing. The state is now encouraging developers to pool larger land parcels to support mass housing initiatives. Some associations have responded positively to this proposal, viewing it as a practical solution to lower housing costs.
Domnic Romell, President of CREDAI-MCHI, has proposed increasing the maximum area for affordable housing units from 30 sq. metres to 60 sq. metres. “We’ve also recommended reducing premiums for affordable housing projects to zero, and suggested the appointment of an agency for rental housing maintenance,” Romell added.
Nitin Deshpande, President of the Marathi Bandhkam Vyavsayik Association, echoed these sentiments, advocating a reduction in GST and stamp duty to facilitate the implementation of affordable housing. “GST benefits should apply to homes costing up to Rs 75 lakh, considering rising flat prices,” he said, also calling for better implementation of the unified development control rules to ensure that FSI incentives benefit end-users.
Clearance expenses, additional fees, and tax burdens—all associated with the ready reckoner rate—are viewed as significant obstacles that keep developers from transferring gains to customers.
The impact of the policy is not universally seen with optimism. Renowned housing specialist Chandrashekhar Prabhu condemned earlier plans for falling short of their own goals. He mentioned the Slum Rehabilitation Scheme (SRA), which was introduced in 1995, and pointed out that despite ambitious plans, just one lakh in-situ tenements have been restored.
“In many cases, housing units built on vacant lands — primarily to benefit builders — are falsely added to SRA figures. Around 70% of slum dwellers have sold their flats, defeating the rehabilitation purpose,” Prabhu explained.
He also highlighted that out of 19,800 dilapidated buildings in Mumbai, only 4,000 have undergone redevelopment since the 1980s, with MHADA leading reconstruction in half of these cases. “Most policies benefit builders, not the urban poor, tenants, or the middle class,” he remarked.
Source: Hindustan Times
