Maharashtra has encountered a significant setback in its efforts to meet urban housing demands, as revealed by the latest economic survey. The state fell short by 30%, achieving only 13.65 lakh dwellings against a targeted 19.4 lakh under the Pradhan Mantri Awas Yojana (Urban) by March 2024. Of the sanctioned units, approximately 8.42 lakh have been completed, leaving a substantial number still under construction.
This shortfall underscores the persistent challenges in addressing the housing needs of urban residents, particularly the economically disadvantaged and middle-income groups. According to state housing department officials, the introduction of a new housing policy aims to bridge this gap by launching additional schemes and fostering private sector participation to boost the availability of affordable housing. “The focus is now on leveraging public-private partnerships to accelerate the supply of affordable housing for weaker sections in urban areas,” remarked a state housing department official. The strategy includes approving joint venture projects between private landowners and the Maharashtra Housing Development Corporation (MHDC). These initiatives aim to construct 43,309 homes for economically weaker sections (EWS) and 4,033 homes for low-income groups (LIGs), with construction already underway on six of these projects.
However, experts have highlighted a decline in the supply of affordable housing, particularly in regions like Mumbai Metropolitan Region (MMR) and Pune throughout 2024. “The government should consider incentivising developers, such as offering tax breaks, to revive the affordable housing segment, which has witnessed stagnation since the onset of the pandemic,” suggested a housing market analyst. The economic survey’s findings suggest a skewed growth trajectory towards mid-range and premium housing segments, reflecting broader economic trends impacting housing affordability across Maharashtra. As the state navigates these challenges, stakeholders are optimistic that strategic policy interventions and increased private sector involvement will play pivotal roles in narrowing the demand-supply gap in urban housing. Moving forward, concerted efforts are anticipated to enhance regulatory frameworks, streamline approvals, and incentivise investments in affordable housing initiatives to meet the diverse housing needs of Maharashtra’s urban population effectively.
