Maharashtra’s Housing Policy 2025 marked a watershed moment for the state’s real estate sector this year, rolling out wide-ranging reforms focused on redevelopment, self-reliance, and targeted housing support. The policy proposes a separate RERA-like law for redevelopment projects, strongly promotes self-redevelopment, and calls for a statewide housing demand survey to assess current needs across districts.
Most notably, it introduces a major incentive for senior living housing by slashing stamp duty to a flat ₹1,000, replacing the earlier levy of 5–7% of the property value, depending on location.
Here are five key takeaways
1) A separate RERA-like law for redevelopment projects
The Maharashtra Housing Policy 2025, approved in July 2025, proposed a separate RERA-like law for redevelopment projects. The policy notes that since redevelopment is not covered under the Real Estate Regulatory Authority Act, 2016, complaints related to such projects are not addressed by MahaRERA.
The approved housing policy states, “The RERA Act does not apply to redeveloped properties. A separate law is necessary to regulate such redevelopment projects and properties.”
The policy notes that several redevelopment projects have stalled in the past, leaving homeowners in distress as developers stopped paying them rent.
According to real estate developers, a dedicated law for regulating redevelopment projects can foster a disciplined redevelopment ecosystem.
“A dedicated law can hard‑code accountability, milestones and disclosure standards specifically for redevelopment, reducing scope for disputes and delays. If implemented well, it can usher in a more disciplined, contract‑honouring redevelopment ecosystem in Mumbai, where timelines are clearer, protections for societies and homebuyers are stronger, and create a level playing field that encourages credible developers while fostering greater accountability across the sector,” said Manan Shah, MD, MICL Group.
Also Read: Maharashtra Housing Policy 2025 formally approved: 5 things you should know
2) ₹2,000 crore push for self-redevelopment
The Maharashtra government, in the housing policy 2025, has pushed self-redevelopment. The state has allocated ₹2,000 crore and proposed the formation of a dedicated cell to assist cooperative housing societies.
This cell will provide end-to-end support, including guidance on planning, funding, developer selection, and project execution, empowering societies to undertake redevelopment independently.
Developers have welcomed the move to streamline redevelopment approvals and procedures.
“Maharashtra’s Housing Policy 2025 is set to be a structural reset for Mumbai’s housing market. By promising faster clearances for redevelopment, the policy addresses key challenges that have historically affected the pace and reliability of Mumbai’s housing supply pipeline. In a city where a large share of future housing stock will come through the redevelopment of ageing buildings, these measures can significantly improve the predictability and bankability of projects, giving resident societies more confidence to sign up and lenders greater comfort to back them,” Shah said.
3) Affordable housing survey
The Maharashtra government, in its Housing Policy 2025, has proposed a housing demand survey across all districts to assess current requirements. The government noted that post-COVID-19, housing needs and consumption patterns have changed drastically, making it essential to update the policy framework.
According to the policy, a detailed housing need survey and analysis will be carried out across all state districts and is targeted for completion by 2026. This will enable a district-wise understanding of housing demand.
4) Stamp duty relaxations for senior living housing
The Maharashtra government’s Housing Policy 2025 introduces an incentive for senior living housing: stamp duty has been dramatically reduced to a flat ₹1,000, replacing the previous slab of 5–7% of the property value, depending on the location. The move aims to make retirement homes more affordable and accelerate development in this underserved segment.
In addition to the reduced stamp duty, the government will offer property tax concessions for owners of senior living homes. Developers of these projects will also benefit from various tax relaxations and enhanced Floor Space Index (FSI) allowances, the policy suggests.
Also Read: Maharashtra Cabinet approves Housing Policy 2025, targets 35 lakh affordable homes by 2030
5) 35 lakh affordable homes by 2030 with an investment of ₹70,000 crore
The Maharashtra cabinet also plans to construct 35 lakh affordable homes by 2030, with an investment of ₹70,000 crore. The homes will be built for the Economically Weaker Sections (EWS) and Lower Income Group (LIG) categories under the policy titled Majhe Ghar – Majhe Adhikar.
Overall outlook on Maharashtra Housing Policy 2025
The core of the Maharashtra Housing Policy 2025 is its multifaceted strategy, which blends financial innovation, regulatory reform, and technological integration to foster accessibility and quality across all residential asset classes. By recognising the specific needs of vulnerable groups like students, senior citizens and industrial workers, and introducing tailored solutions like ‘rent-to-own’ models and purpose-built housing, it broadens the definition of housing accessibility. The emphasis on slum rehabilitation and self-redevelopment aims to transform informal settlements into dignified living spaces, a crucial step towards a slum-free Maharashtra, a report by JLL and Naredco titled ‘Towards Housing for All in Maharashtra – The 2025 Policy Blueprint’ has said.
Beyond direct housing provisions, the policy is poised to spur growth in allied sectors. The construction industry will benefit from increased project volumes and demand for innovative, green building technologies. Infrastructure development will be spurred by the strategic linking of housing with transport networks and employment hubs, fostering more integrated urban landscapes. The mortgage finance sector is set to expand significantly, with enhanced access to capital and increased lending volumes driven by substantial investment in housing, it noted.
The challenges
However, the journey ahead will be a collaborative one, and success hinges on overcoming deeply entrenched challenges. The policy’s success is not guaranteed; it will be co-authored by two key protagonists. On one side is the government, which must demonstrate an unwavering commitment to the ‘MISSION MODE’ framework, ensuring that the promised transparency, speed, and accountability become an administrative reality. On the other side is the real estate industry, which must rise to the occasion, embracing the new opportunities with strategic foresight and a commitment to quality and social responsibility, it noted.
Critical hurdles such as land acquisition bottlenecks, the thin financial margins of the affordable housing sector, and severe operational delays—like the tenant eviction process, which can take three to seven years—must be proactively managed. If these two forces can work in synergy, the policy has the potential to achieve far more than its housing targets. It can revitalise urban centres, create millions of jobs, improve the quality of life for its citizens, and solidify Maharashtra’s position as a national leader in progressive urban governance and sustainable development, the report added.