How Maharashtra Elections Could Transform Mumbai’s Real Estate Market  

The real estate sector is directly linked with government policies and infrastructure projects, and in Mumbai — a city that sees high-rise towers and overstuffed homes at its every turn — this matrix becomes even more evident. As Maharashtra elections draw near, industry bigwigs are speaking about what the election results mean for Mumbai’s property market.

Several visionaries for example Anuj Puri, Chairman, Anarock Group; Boman Irani, Chairman and MD Keystone Realtors; Dhaval Ajmera, Director, Ajmera Realty & Infra India Ltd etc have given their views on affordable housing, slum redevelopment and the broader vision of governance stability is to Mumbai’s real estate.  

Stability in Governance: A Catalyst for Real Estate Growth

One of the central themes emphasized by real estate experts is the importance of a stable and aligned government for the sector's growth. Anuj Puri of Anarock Group highlighted that when the state and central governments are in sync, policies and approvals are streamlined, leading to faster infrastructure development.  

“A stable government means that projects are cleared more easily, that policies remain fairly consistent for at least five years and that infrastructure projects like roads and connectivity are continuously being undertaken,” Puri said.

High demand for housing in the Mumbai Metropolitan Region (MMR) is now at odds with a bottleneck in project approvals that stalled new launches. This has led to a mismatch between supply and demand according to Puri with unsold inventory at an all-time low. Without more projects starting soon, prices will likely keep increasing, adding further pressure on affordability.  

The Role of Slum Redevelopment in Mumbai’s Transformation

Mumbai’s housing crisis has long been blamed on its vast slum population, which takes up prime urban land but does not have suitable living conditions. So slum redevelopment has been one of the government's thrust areas.

Keystone Realtors’ Boman Irani praised the government’s resolve in making Mumbai “slum-free”, adding that this is an initiative with tremendous potential for economic and social transformation.  

Boman Irani of Keystone Realtors lauded the government’s commitment to creating a "slum-free Mumbai," stating that this initiative has immense potential for both economic and social transformation.  

"The redevelopment sector offers enormous opportunities. Faster approvals and a consistent focus on slum redevelopment can help address Mumbai’s housing shortage while improving living conditions for thousands," Irani remarked.  

The redevelopment of slums not only frees up valuable land but also paves the way for modern housing projects, which can include affordable units. However, timely execution and clear policy direction are critical to the success of such programs.  

Affordable Housing: Rethinking the Definition  

Affordable housing is another crucial area that requires immediate attention. While the government has made strides in promoting housing affordability, the current definition may not align with Mumbai’s unique real estate dynamics.  

Currently, affordable housing in India is categorized based on both price and size, with a price cap of ₹45 lakh. However, as Dhaval Ajmera of Ajmera Realty pointed out, this dual criterion excludes a significant portion of Mumbai’s housing stock from the affordable segment due to the city’s high property prices.  

Ajmera proposed an alternative approach: focusing solely on the size of the apartment, such as units up to 600 square feet.  

"By removing the price cap and focusing on size alone, we could redefine affordability in Mumbai. This would potentially include 60-70% of apartments in the affordable category," he said.  

Such a redefinition could unlock massive opportunities for both buyers and developers, as more units would qualify for government subsidies and incentives, driving demand in the market.  

Infrastructure Development: The Real Game-Changer  

A solid infrastructure plays a key role in driving any city’s real estate market — and Mumbai is no different. In order to further boost confidence in the real estate sector, leaders from the Metros’s trade bodies said that the upcoming government will need to boost investment in vital infrastructure projects — including metro expansions, upgraded road networks, and better public amenities.

Infrastructure development increases property values and opens peripheral areas, expanding the city horizon across real estate. A well-connected one transforms suburbs or underdeveloped areas into thriving residential as well as commercial sectors which turns out to be beneficial for both developers and end-users etc.  

Challenges to Address  

The election results do bring the promise of a brighter future for Mumbai’s real estate, but much needs to be done to fulfil this promise:  

1. Approval Delays: Approval for new projects is necessary to meet rising demand for housing and halt the artificial inflation of prices.  

2. Land Availability: Mumbai is capital constrained in terms of RE with respect to land. Such policies of land aggregation and redevelopment are of utmost importance.

3. Transparency and Accountability: Building trust among homebuyers and investors will require transparency in the project timelines and accountability in the implementation of the policy.

4. Sustainability: As the city grows, sustainability must be a key consideration. Green buildings, eco-friendly construction practices, and efficient waste management systems should be encouraged through incentives and regulations. 

The Road Ahead  

With elections on the books in Maharashtra, it’s crunch time for Mumbai’s property market. A stable governance system and clear focus of development in the areas of affordable housing, slum redevelopment and infrastructure etc, shall enable industry leaders to introduce the next phase of growth.

It’s a critical time for homebuyers, to assess opportunities and make wise decisions. If the policy works, development will have a huge opportunity over the next few years. And for policymakers, it’s a permissive moment to shape Mumbai’s future as a modern, inclusive metropolitan city.

Armed with the right combination of vision, strategy, and execution, Mumbai’s real estate market is capable of overcoming all challenges to emerge stronger than ever before.