Maharashtra’s real estate sector has seen notable momentum in recent years, largely driven by redevelopment and brownfield projects in established urban areas. According to Anil Wankhede, Deputy Chief Executive Officer of the Maharashtra Housing and Area Development Authority (MHADA), the authority is now focusing on redeveloping ageing housing layouts in cities such as Mumbai, Pune and Nashik.
Speaking about the sector’s performance, Wankhede said redevelopment projects located in prime urban locations have played a key role in sustaining housing demand over the past two years. These projects have contributed significantly to the growth of the real estate market across the state.
MHADA, which has a legacy spanning more than seven decades, has delivered around nine lakh housing units across Maharashtra, including nearly 2.5 lakh homes in Mumbai. Over the next few years, the authority plans to prioritise redevelopment of old housing schemes, many of which are now 40–45 years old.
Wankhede said the authority aims to create an ecosystem that encourages participation from private developers while ensuring that a portion of the newly developed housing stock remains affordable. In parallel, MHADA has submitted a rental housing policy to the state government for approval to address the growing need for accessible accommodation in cities.
The proposed policy seeks to promote rental housing for diverse groups, including students, working women, senior citizens and individuals visiting cities for short-term employment or medical treatment. However, private developers have traditionally been cautious about entering the rental housing segment due to relatively lower returns.
“Rental housing typically yields around 4–4.5% returns, compared to about 20% in conventional real estate projects,” Wankhede noted, adding that the policy includes incentives to make such developments more viable.
MHADA is also advancing redevelopment plans for several large layouts, including projects in Kamathipura, BDD Chawls, Motilal Nagar, Adarsh Nagar in Worli, Bandra Reclamation and SV Nagar. Many of these developments are expected to be tendered soon.
The authority continues to receive strong demand for affordable housing through its lotteries. In the most recent lottery offering around 3,500 homes in Mumbai, nearly 1.5 lakh applications were received.
Wankhede added that MHADA’s financial position has strengthened considerably in recent years, with funds increasing from about Rs 150 crore in mid-2023 to more than Rs 5,000 crore, largely due to premiums received from redevelopment projects. The authority is also working on policy changes to accelerate the redevelopment of old cess buildings in Mumbai, with the aim of completing these projects within the next 15 years.
Source: ET Realty
