Bold policy intervention targets the affordability crisis as new peripheral clusters offer accessible homeownership opportunities for middle-class families
- Combined annual sales of Mumbai and Pune nearly doubled from 46,528 units (2016-2019) to 105,332 units (2022-H1 2025)
- Mumbai witnessed around 28% capital appreciation between 2019 and H1 2025, peaking at more than 10% growth in 2023
- Pune saw around 20.0% price appreciation over the same period
- Premium housing (INR 10 million / INR 1 crore and above) share jumped from 43% to 59% of launches (2022-H1 2025) in the Mumbai and Pune markets
- Mass housing share (sub-INR 10 million / INR 1 crore) declined from 57% to 40% of supply during the timeframe
- Affordable housing (sub-INR 5 million/ INR 0.5 crore) dropped from 15% to 12% share in market supply
MUMBAI, 26 SEPTEMBER 2025: Mumbai and Pune are set to undergo a transformative housing revolution that could reshape homeownership opportunities for millions of middle and lower-income families, according to JLL-NAREDCO report titled “Towards ‘Housing for All’ in Maharashtra-The 2025 Policy Blueprint” released today. In response to rapid market premiumization, policymakers have unveiled an ambitious INR 70,000 crore investment plan targeting 3.5 million affordable homes by 2030, while new peripheral clusters emerge as viable alternatives to expensive city centers.
A market boom creates new opportunities
The post-COVID housing surge has been remarkable, with combined annual sales in Mumbai and Pune nearly doubling from 46,528 units (2016-2019) to 105,332 units (2022-H1 2025). This unprecedented growth reflects strong economic confidence and robust demand across both metropolitan areas. Mumbai achieved around 28% capital appreciation between 2019 and H1 2025, with a peak growth rate of more than 10% in 2023, while Pune registered around 20.0% solid gains. These increases reflect the cities’ growing appeal and economic dynamism.
“In Maharashtra, premium housing surged from around 43% to 59% of total launches between 2022 and H12025, while affordable housing under INR 5 million plummeted from approximately 15% to just 12% share. The ‘My House, My Right’ policy addresses this supply-affordability gap through an estimated INR 70,000 crore investment targeting 3.5 million EWS/LIG homes by 2030, emphasizing inclusivity, sustainability, and reliability. The initiative leverages AI-powered transparency via the State Housing Information Portal (SHIP) and integrates with government platforms like MahaRERA and PM Gati Shakti. This is a step in the right direction and towards a better tomorrow” said Karan Singh Sodi, Senior Managing Director (Mumbai MMR & Gujarat) and Head-Alternatives, India, JLL
Strategic response to market evolution
While premium housing has grown to dominate new launches—surging from around 43% to 59% between 2022 and H1 2025—this shift has catalyzed a comprehensive policy response designed to ensure inclusive growth. The decline in mass housing share in launches from approximately 57% to 40% and affordable housing from 15% to 12% during this period highlighted the need for strategic intervention, prompting the landmark affordable housing initiative. India’s leading metropolitan regions are experiencing a paradigm shift in urban development, with emerging affordable housing corridors becoming catalysts for sustainable, inclusive growth. Rather than viewing peripheral expansion as urban sprawl, progressive city planners are strategically leveraging data insights to create well-planned, connected communities that serve as growth engines for the broader metropolitan economy.
“The Maharashtra State Housing Policy 2025 serves as an economic transformation blueprint that leverages data-driven governance and comprehensive housing strategies to create new markets. It establishes a balanced incentive framework for stakeholders, providing developers with 2.5 FSI for senior housing, 15% commercial FSI for student housing, and 1% GST across all segments. The policy creates investment-grade opportunities in senior living, student housing, and rental markets while enabling financially viable brownfield redevelopment of Mumbai’s cessed buildings and slums to promote inclusive growth and revitalize stalled projects,” said Dr. Samantak Das, Chief Economist and Head of Research & REIS, India, JLL
Mumbai’s strategic corridor development: A model for metropolitan growth
“The Maharashtra State Housing Policy 2025 arrives at a critical juncture—when our residential markets are experiencing unprecedented velocity yet facing deep structural challenges in affordability and inclusivity. By prioritizing ‘Majhe Ghar, Majhe Adhikar’ as its guiding sentiment, this policy doesn’t just promise housing targets—it reshapes Maharashtra’s urban future, making it more equitable, sustainable, and inclusive for generations to come,” said Prashant Sharma President, NAREDCO Maharashtra
Mumbai’s metropolitan region demonstrates exceptional potential through four carefully planned affordable housing corridors, each backed by strong infrastructure investments and connectivity data:
Mumbai Metropolitan Region (MMR): Strategic development corridors
Four key corridors are driving Mumbai’s metropolitan expansion, each offering distinct commercial real estate opportunities. The Navi Mumbai Corridor (Panvel-Ulwe-Karanjade) leads with state-of-the-art infrastructure, modern utilities, and digital connectivity. Its strategic positioning along major transport arteries ensures seamless integration with Mumbai’s core, making it ideal for businesses seeking premium operational environments. The Thane Development Zone (Ghodbunder Road-Bhayandarpada) offers established multi-modal transport networks with proven commuter patterns and strong absorption rates, demonstrating sustained market demand and reliable connectivity infrastructure. The Vasai-Virar Growth Belt (Nalasopara-Naigaon) provides an optimal price-to-infrastructure ratio, creating accessible homeownership and investment opportunities. This corridor attracts young professionals and families seeking quality living standards at competitive pricing. The Kalyan-Dombivli Hub emerges as a central node with multi-directional connectivity, generating local employment while maintaining affordability. Its strategic location offers operational efficiency combined with cost-effective real estate solutions. These corridors collectively represent Mumbai’s evolution into a polycentric region, offering diverse opportunities across different market segments and investment strategies for CRE professionals.
Pune’s multi-directional expansion: Creating diverse urban ecosystems
Pune’s strategic four-directional growth model showcases how data-driven planning creates specialized economic zones while maintaining affordability:
Northern IT Integration Zone
- Moshi-Chakan-Punawale: Direct proximity to established IT corridors, reducing commute times by 40-60%
- Economic Synergy: Creating live-work ecosystems that boost productivity and quality of life
North-Eastern Employment Corridor
- Wagholi-Charholi Budruk-Wadgaon Shei: Rapidly growing employment centers with 25%+ job growth annually
- Infrastructure Development: New commercial developments driving residential demand
South-Western Planned Communities
- Dhayari-Wadgaon Budruk: Purpose-built development zones with integrated planning
- Sustainability Focus: Green building standards and efficient resource utilization
South-Eastern Infrastructure-Ready Markets
- Handewadi-Autadwadi-Undri: Pre-developed infrastructure reducing development timelines
- Investment Confidence: Strong municipal support ensuring reliable utility services
- Game-Changing Infrastructure Investment
The success of these emerging clusters will be supported by robust infrastructure development plans.
Building Inclusive growth
This comprehensive approach to housing development represents a proactive strategy to maintain Mumbai and Pune’s position as inclusive economic centers. By creating diverse housing options across price points and locations, both cities are ensuring that their continued growth benefits workers across all income levels. The data shows that while premium housing demand remains strong, the policy response demonstrates a commitment to balanced urban development that preserves opportunities for middle-class homeownership while supporting continued economic expansion. Mumbai and Pune’s housing transformation, backed by substantial investment and strategic planning, positions both cities as models for inclusive urban growth in rapidly developing India.
