Mumbai Affordability Index At 50%; MHADA To Unlock 800–1,000 Acres Through Cluster Redevelopment: IAS Sanjeev Jaiswal

With nearly 90% of Mumbai’s developable land already utilised and housing affordability under mounting pressure, the Maharashtra Housing and Area Development Authority (MHADA) is accelerating a large-scale cluster redevelopment strategy to address the city’s structural housing constraints.

Speaking at the ET Realty Real Estate Conclave 2026 in Mumbai, IAS Sanjeev Jaiswal, Vice-President and CEO of MHADA, said the city’s housing affordability index currently stands at nearly 50%. This implies that an average household spends about half of its income on EMIs when purchasing a home — a level that signals deep affordability stress.

Structural Reforms Needed To Ease Costs

Jaiswal underlined the need for policy-level corrections rather than incremental fixes. Rationalising premiums, development charges and taxes applicable to affordable housing, he said, could reduce prices by up to 25% in certain segments.

With land scarcity intensifying and redevelopment becoming more complex, piecemeal, building-by-building projects are no longer sufficient to meet long-term housing demand. The solution, according to MHADA, lies in consolidated, township-style cluster redevelopment.

800–1,000 Acres To Be Opened For Redevelopment

“We are opening up 800 to 1,000 acres of land for cluster redevelopment — something that has never happened before,” Jaiswal said.

Under this model, fragmented land parcels will be combined into integrated layouts of 60–100 acres. The aim is to create planned residential pockets with upgraded infrastructure, open spaces, and community amenities — effectively developing township-like environments within the city.

Projects such as GTB Nagar and Abhyudaya Nagar are already at advanced stages, with several other clusters in the pipeline.

2.8 Million Affordable Homes Targeted By 2030

Under Maharashtra’s broader housing roadmap, 2.8 million affordable homes are targeted across the Mumbai Metropolitan Region (MMR) by 2030. MHADA is expected to directly and indirectly contribute around 0.8 million units through various schemes.

In the last two-and-a-half years alone, nearly 50,000 homes have been delivered. Going forward, 60–70% of new housing supply is expected to come from approved or pipeline cluster redevelopment projects.

The cluster model is projected to generate substantial housing stock for economically weaker sections (EWS) and low-income groups (LIG) over the next five to seven years, aligning with the state’s affordable housing goals.

Infrastructure To Rebalance Demand

Jaiswal also emphasised that infrastructure expansion will play a critical role in redistributing housing demand across MMR. Metro network growth, new connectivity corridors and the upcoming Navi Mumbai International Airport are expected to unlock peripheral growth zones and reduce pressure on core city areas.

However, he cautioned that rapid supply expansion must be calibrated carefully to avoid temporary inventory overhang if demand absorption slows.

A Diversified Housing Approach

Beyond ownership housing, MHADA’s 2025 housing policy envisions a diversified mix that includes rental housing, student accommodation, working women’s hostels and industrial housing.

Jaiswal urged developers to focus more on middle-income and first-time homebuyers. While luxury housing continues to perform, he stressed that inclusive growth is essential for long-term urban stability. Integrating affordable units within premium projects, he suggested, can help balance commercial objectives with broader social responsibility.

From Fragmented Redevelopment To Integrated Urban Transformation

As Mumbai grapples with ageing housing stock, rising costs and shrinking land availability, MHADA’s cluster-led strategy represents a structural shift. The focus is no longer on isolated building upgrades, but on transforming entire neighbourhoods into integrated, infrastructure-ready communities.

If implemented effectively, unlocking 800–1,000 acres through cluster redevelopment could materially improve affordability, expand housing access across income segments, and reshape Mumbai’s urban growth trajectory by 2030.