The Maharashtra Cabinet has approved the state housing policy 2025, marking the state’s first comprehensive housing roadmap in nearly two decades. The policy, cleared on 20 May 2025, sets ambitious targets to address the state’s growing urban housing demands and lays emphasis on affordable, inclusive, sustainable and resilient housing.
This is the first official housing policy since 2007. Although drafts were prepared in 2015 and 2021, they were never formally adopted. The new framework seeks to address long-standing housing needs, particularly for the economically weaker sections (EWS) and low-income groups (LIGs). A key objective is to construct 3.5mn (million) homes for these groups by 2030, with an overall goal of 5mn houses in the next 10 years. The estimated investment for this is around Rs70,000 crore.
The policy introduces rental housing models for working women, students and industrial workers, who will be offered lease terms of up to 10 years. These schemes will be implemented through public-private partnerships with developers receiving incentives. Corporate social responsibility (CSR) funds can also be utilised to support such social housing programmes. In line with this, the state will establish a Rs20,000 crore MahaWas Niwas Nidhi to support large-scale housing projects and a Rs2,000 crore self-redevelopment fund to promote community-led redevelopment.
The new policy also includes provisions for targeted housing for specific groups such as government employees, ex-servicemen, freedom fighters, persons with disabilities, journalists, artists, mill workers, mathadi workers and airport staff. In cities like Mumbai, affordable rental housing will be developed near major hospitals for the benefit of patients' families. These schemes will align with the Pradhan Mantri Awas Yojana (Urban).
A notable component of the policy is the push for developing residential units close to industrial and employment hubs to support the 'walk-to-work' concept. Between 10% to 30% of MIDC plots will now be reserved exclusively for housing. The government will also implement the inclusive housing scheme across all metropolitan region development authorities and large urban local bodies with populations over 1mn.
The policy further supports self-redevelopment initiatives, making them easier and more attractive. Amendments are proposed to the MHADA Act, the Maharashtra Regional and Town Planning Act (MRTP), and the Municipal Corporation Act to streamline redevelopment processes beyond Mumbai. To encourage green construction, the government will promote climate-resilient buildings using energy-efficient materials, heat-resistant designs, rooftop gardens and eco-friendly technologies.
A central feature of the policy is the creation of the state housing information portal (SHIP), a digital platform designed to support data-driven and transparent decision-making. SHIP will integrate geotagging, monitor fund disbursement, track housing supply, and interface with systems such as Maharashtra Real Estate Regulatory Authority (MahaRERA), Mahabhulekh and PM Gati Shakti. Artificial intelligence (AI) tools will be used for forecasting and analysis to ensure real-time updates and coordination across departments.
To identify available land for housing, Maharashtra government plans to create a statewide land bank by 2026. This will include land parcels from the revenue, forest, Maharashtra Industrial Development Corporation (MIDC), Maharashtra State Road Development Corporation (MSRDC) and other departments. The information will be mapped and updated through SHIP to facilitate planning for future residential projects.
To ensure project accountability, a state-level supreme grievance redressal committee will be formed. This body will monitor quality control, address beneficiary grievances, and oversee the timely completion of redevelopment projects. Developers will be required to enter into tripartite agreements with housing societies and planning authorities to safeguard resident rights, particularly in projects falling under key redevelopment provisions of the Development Control and Promotion Regulation (DCPR) 2034 and the Maharashtra Housing and Area Development Authority (MHADA) Act, 1976.
For the slum rehabilitation sector, the policy outlines extensive reforms. These include using Central government land for joint venture projects with the slum rehabilitation authority (SRA), encouraging the use of CSR funds for slum housing, and ensuring mandatory registration of agreements between slum dwellers and developers to secure legal rights. The policy also promotes cluster redevelopment to consolidate multiple slums in the same area through coordinated planning.
Digital tools will be deployed across SRA projects for real-time tracking, beneficiary identification, and fund management. Shared spaces such as staircases and lobbies will now be counted within the rehabilitation area, offering greater floor space index (FSI) to developers. Provisions are also made to redevelop ageing or hazardous buildings, and for tender-based selection of new developers in stalled projects.
To fast-track progress in Mumbai’s suburban region, a joint venture scheme involving entities like BrihanMumbai Municipal Corporation (BMC), MHADA, City and Industrial Development Corporation (CIDCO), MMRDA, MAHAHOUSING, MIDC and SPPL has been approved for 228 stalled projects. Further, the policy encourages partnerships with academic and research bodies such as IITs, IIMs, UDRI and WRI to help shape a knowledge-based approach to housing that addresses economic, social and climatic challenges.
Overall, the state housing policy 2025 signals a transformative shift in Maharashtra’s approach to housing. With a combination of digital innovation, inclusive planning, financial mobilisation and inter-agency coordination, the government aims to deliver broad-based housing solutions that are both future-ready and socially responsive.
