MHADA to Roll Out Rental Housing Policy for Low-Income Groups in MMR, Lottery Deferred to 2026

Mumbai, September 2025 – Affordable housing in the Mumbai Metropolitan Region (MMR) could soon take a new shape as the Maharashtra Housing and Area Development Authority (MHADA) prepares to unveil a dedicated rental housing policy for low-income groups. The initiative, expected to be implemented first in Mumbai and its surrounding cities, aims to provide a sustainable housing alternative for those struggling to buy homes amid soaring property prices.

Rising Demand for Affordable Housing

Property prices in Mumbai, Thane, and Navi Mumbai have consistently remained among the highest in the country, keeping home ownership out of reach for economically weaker sections and even middle-income families. MHADA’s housing lotteries continue to attract massive interest, but the limited number of flats available each year has left a large portion of the population underserved.

Against this backdrop, MHADA has chosen to push forward a comprehensive rental housing model. According to MHADA Vice President IAS Sanjeev Jaiswal, the draft policy will be ready within a month and tabled before the authority for approval. Once cleared, it will be forwarded to the state government for the final nod.

Key Features of the Rental Housing Policy

Officials have indicated that the new policy will:

• Cover allotment rules, rent structures, and maintenance responsibilities.
• Encourage participation from both MHADA and private developers to create adequate rental stock.
• Prioritise implementation in the MMR, before being extended to the rest of Maharashtra.

“MHADA is preparing a comprehensive rental housing policy for the entire state, with priority implementation in the Mumbai Metropolitan Region,” Jaiswal confirmed. “The objective is to provide a stable and affordable rental market to those who cannot yet purchase homes.”

The policy is also being designed in line with the Union government’s larger plan to develop the MMR as an international growth hub. Officials expect the region’s population to surge further due to increased job opportunities and educational avenues, making rental housing a critical component of urban planning.

Push for Redevelopment Projects

In parallel with the rental initiative, MHADA is also stepping up its efforts to accelerate group redevelopment projects in Mumbai. This includes the redevelopment of old MHADA colonies and cess-based buildings, a move expected to not only create additional housing stock but also provide larger apartments and improved open spaces for current residents.

Redevelopment has been seen as a crucial tool to balance the need for modern housing with Mumbai’s land constraints. Officials believe the combination of rental housing and redevelopment could significantly expand the availability of affordable units in the coming years.

Mumbai Lottery Draw Deferred

While MHADA is pushing ahead with structural reforms, homebuyers hoping to secure a flat in Mumbai through the traditional lottery system will have to wait longer. The annual Mumbai housing lottery, which was earlier expected to release around 5,000 flats during Diwali 2025, has now been postponed to March–April 2026.

According to Jaiswal, the delay stems from insufficient housing stock. Around 2,500 flats from the Patra Chawl project, which had been delayed due to environmental clearances, are now moving forward after approvals. Construction work is expected to resume soon.

Another factor influencing the delay is the upcoming civic elections, which will bring into effect the model code of conduct. Officials clarified that the next lottery will be conducted in the 2025–26 financial year, once all logistical challenges are addressed.

MHADA Embraces AI with “MHADASathi”

In a separate development, MHADA has also taken a step towards digital transformation by launching an AI-powered chatbot named “MHADASathi.” The tool, available on MHADA’s official website, is designed to simplify access to information for citizens, including lottery applicants, winners, residents, and tenants of cess-based buildings.

With interactive features and easy navigation, MHADASathi is expected to reduce dependence on physical visits and manual queries, offering users quick answers about lotteries, redevelopment, and housing schemes.

A New Era in Housing Policy

Experts believe the introduction of a rental housing policy marks a strategic shift in MHADA’s approach. While the authority has historically focused on home ownership through its lottery system, the new policy acknowledges the reality of urban housing needs, particularly for migrant workers, students, and families priced out of the market.

Coupled with redevelopment drives and the adoption of AI-powered services, MHADA appears to be charting a multi-pronged strategy that blends affordability, technology, and inclusivity.

As the draft rental housing policy moves toward approval, thousands of families in MMR are watching closely, hoping for a more accessible and flexible housing option. For now, however, those waiting for the next housing lottery will need patience until mid-2026.