Mumbai’s real estate sector has voiced concerns over the potential impact of recent water supply restrictions imposed by the Brihanmumbai Municipal Corporation (BMC), cautioning that prolonged curbs could affect construction schedules, increase project costs and delay housing delivery across Mumbai and the Mumbai Metropolitan Region (MMR).
The civic body recently halted water supply to construction sites and reduced water allocation to commercial and industrial users by 20% after storage levels across Mumbai’s seven lakes declined to 10.35% of total capacity. The measures have been introduced to safeguard drinking water supplies until reservoir levels improve.
While industry stakeholders have supported the need for water conservation during the ongoing shortage, they noted that construction activities rely heavily on consistent water availability for key processes such as concreting, curing, plastering and finishing work.
Kamlesh Thakur, President of NAREDCO Maharashtra and Co-Founder and Managing Director of Srishti Group, said the industry recognises the necessity of temporary restrictions and supports prudent water management measures. However, he cautioned that prolonged disruptions could impact project execution, labour efficiency and delivery timelines while pushing up development costs.
According to Thakur, developers have increasingly turned to alternatives such as treated wastewater, recycled water, rainwater harvesting systems and tanker supplies. However, access to these solutions remains uneven, particularly for affordable and mid-income housing projects where cost pressures are already significant.
He also stressed the importance of creating a dedicated treated-water ecosystem for construction and other non-potable uses. Expanding water recycling infrastructure and establishing specialised distribution networks could help reduce dependence on freshwater resources while ensuring continuity in development activity.
Shilpin Tater, Managing Director of Superb Realty, noted that the restrictions come at a time when housing demand remains robust across Mumbai and the MMR. He said greater reliance on tanker water and alternative sources could increase project expenses, highlighting the need for sustainable construction practices and water-efficient technologies.
Shraddha Kedia Agarwal, Director of Transcon Developers, observed that water remains one of the most critical inputs in construction despite the sector’s ability to adapt to various regulatory and infrastructure challenges. She said projects nearing completion may face scheduling difficulties if restrictions continue for a prolonged period, adding that wider adoption of greywater recycling, treated water usage and rainwater harvesting will be essential going forward.
Dhruman Shah, Promoter of Ariha Group, said the situation underscores the need for resilient urban infrastructure planning. He warned that extended restrictions could have ripple effects across the development cycle, impacting construction progress, possession schedules and commitments made to homebuyers. Shah also called for accelerated adoption of sustainable water management practices and increased utilisation of recycled water within the sector.
Industry representatives have urged authorities to improve access to treated water, ensure adequate tanker availability at reasonable prices and streamline approvals for alternative water sourcing. Developers have also sought consideration for timeline extensions in cases where construction progress is demonstrably affected by water shortages.
Although the industry expects reservoir levels to recover with the monsoon, stakeholders believe the current situation highlights the need for long-term water management strategies capable of supporting urban growth while conserving critical resources. They maintain that balancing housing development, infrastructure expansion and sustainable water usage will remain a key challenge as Mumbai continues to grow.
Source: Prop News Time
