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The Maharashtra Housing and Area Development Authority (MHADA) has announced a massive housing initiative, with plans to construct 19,497 affordable homes across the state in the 2025-26 fiscal year. The project is aimed at easing the housing crisis in urban areas, especially in Mumbai, Pune, Nashik, Aurangabad, and Nagpur.
Mumbai’s housing push: over 5,000 new units
Mumbai will receive 5,199 new homes, with a budget of ₹5,749.49 crore allocated for various redevelopment projects. MHADA’s focus will be on revamping old housing colonies and chawls, making way for modern, affordable homes.
The biggest chunk of this funding—₹2,800 crore—has been set aside for the redevelopment of Bombay Development Department (BDD) chawls in Worli, Naigaon, and Parel. These iconic but ageing buildings will be transformed into better housing for residents.
Other key MHADA projects in Mumbai include:
- Jogeshwari East (PMGP Colony) – ₹350 crore for redevelopment
- Bandra West (Parigh Khadi Project) – ₹205 crore allocated
- Goregaon (Siddharth Nagar Housing Project) – ₹573 crore budgeted
- Mill Workers’ Housing – ₹57.50 crore for long-awaited homes
- Borivali and SGNP Rehabilitation – ₹200 crore each for housing developments
MHADA’s role in Maharashtra’s housing sector
MHADA has been the key agency for providing affordable housing in Maharashtra. This initiative is a part of the government’s effort to reduce housing shortages and improve urban living conditions. The new housing projects will be available under MHADA’s lottery system, allowing middle-income and lower-income families to secure affordable homes.
Apart from Mumbai, MHADA will also focus on developing affordable housing in Pune, Nashik, Aurangabad, and Nagpur, where rapid urbanisation has created a surge in demand.
Impact on real estate and urban planning
The MHADA housing initiative will have a significant impact on Maharashtra’s real estate sector. By increasing the supply of affordable homes, the project could help stabilise property prices in key cities. Moreover, the redevelopment of old buildings will enhance living conditions, providing modern amenities for thousands of families.
The state government is also complementing these housing developments with infrastructure projects, such as metro expansions, better roads, and public transport improvements, making Maharashtra’s cities more liveable.
With MHADA at the forefront of this transformation, the 2025-26 fiscal year is set to bring a major boost to the state’s housing sector, giving hope to thousands of home-seekers.
