The Maharashtra Housing and Area Development Authority (MHADA) is set to accelerate the redevelopment of several ageing residential layouts across Mumbai, Pune and Nashik, marking a renewed push to upgrade older urban neighbourhoods. Many of these housing clusters were developed decades ago and now require reconstruction to improve living standards, infrastructure and housing availability.
Redevelopment of such brownfield sites has increasingly driven real estate activity in Maharashtra, particularly in well-established locations with existing connectivity, social infrastructure and proximity to employment hubs. With limited availability of large vacant land parcels in major cities, officials view redevelopment as a key strategy to expand housing supply.
Anil Wankhede, deputy chief executive officer of MHADA, said the authority is prioritising layouts built around 40 to 45 years ago, where redevelopment is now more viable than continued repairs. He added that MHADA is working on a framework to encourage private developer participation while ensuring that affordable housing remains a core component of these projects.
Since its inception, MHADA has constructed nearly nine lakh homes across the state, including about 2.5 lakh units in Mumbai. Redevelopment of older layouts is now emerging as the next phase of its housing strategy, particularly in high-demand urban centres.
Alongside this, MHADA has drafted a rental housing policy and submitted it to the state government. The policy aims to expand rental housing options in cities where rising property prices have made home ownership increasingly difficult. Officials noted that while India’s housing market has traditionally focused on ownership, demand for organised rental housing is steadily growing.
The rental housing model is expected to cater to students, working professionals, women, senior citizens and temporary migrants. MHADA has also engaged with industry bodies such as NAREDCO while shaping the policy, with developers highlighting lower returns of 4 to 4.5 percent compared to nearly 20 percent in conventional projects—prompting the need for incentives.
In Mumbai, key redevelopment projects—including Motilal Nagar, Adarsh Nagar in Worli, Bandra Reclamation and SV Nagar—are progressing towards tendering. Meanwhile, strong demand continues for MHADA’s housing lotteries, with around 1.5 lakh applications received for 3,500 homes in its latest offering.
With improved finances and policy support, MHADA is also working to resolve legal and tenant-related hurdles to speed up redevelopment, particularly of old cess buildings. The authority believes these efforts could transform ageing housing stock over the next 15 years, making redevelopment central to Maharashtra’s long-term urban housing strategy.
Source: Prop News Time
