September 18, 2025: The Maharashtra Housing and Area Development Authority (MHADA) has submitted a proposal to the state government to allow tenants of rental housing projects to purchase their homes after five years. The move comes under the state’s recently announced housing policy, which promotes large-scale rental housing for working women, industrial labourers, students and senior citizens.
MHADA Vice-Chairman and CEO Sanjeev Jaiswal said the initiative had been presented to the Chief Minister and received positive feedback. He added that granting ownership rights would encourage greater participation, as more residents would be inclined to take advantage of the scheme if long-term security was assured.
For the first time, rental homes will also be allocated to ineligible slum dwellers under the Dharavi redevelopment project, with the option to later purchase these properties. A comprehensive policy is being framed, covering the creation of a special purpose vehicle for implementation, appointment of property management companies, and systems for assessing both construction costs and rental values.
MHADA has proposed a formula whereby the minimum purchase price of these homes would be based on construction costs as well as ready reckoner rates. Tax concessions, financial assistance and a fast-track approval process for developers investing in rental housing are also part of the policy framework. In addition, underutilised government land near employment hubs and educational institutions is set to be earmarked for such projects, thereby reducing acquisition costs.
The policy further outlines tenant safeguards, including low-interest deposits, regulated financial support, and a dedicated mechanism for the maintenance and repair of rental properties. Officials believe that this dual model of affordable rental housing with eventual ownership will provide both immediate relief and long-term stability to Maharashtra’s urban residents.
Source: Loksatta
