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The Maharashtra Budget for the financial year 2025-26 has been unveiled, presenting a comprehensive roadmap that is expected to significantly invigorate the state's real estate sector. The budget's emphasis on affordable housing, infrastructure development, and urban revitalization is poised to drive demand in both residential and commercial markets across key property hubs, including Mumbai, Pune, and Nashik. The strategic allocation of funds and the announcement of several pivotal infrastructure projects are anticipated to enhance connectivity, alleviate housing shortages, and ultimately strengthen Maharashtra's position as a leading economic powerhouse in India.
One of the most noteworthy aspects of the budget is the substantial allocation of resources towards affordable housing initiatives. A staggering Rs 15,000 crore has been earmarked for rural housing under the Pradhan Mantri Awas Yojana (PMAY) Phase-2, with the ambitious goal of constructing 2 million homes. This initiative is expected to provide a significant boost to the rural economy, create employment opportunities, and improve the living standards of marginalized communities. Furthermore, Rs 8,100 crore has been allocated for urban housing under PMAY (Urban), underscoring the government's commitment to achieving the objective of 'Housing for All.' This investment will address the growing demand for affordable housing in urban areas, catering to the needs of low-income families and contributing to inclusive urban development.
The budget also places a strong emphasis on infrastructure development, recognizing its crucial role in driving economic growth and enhancing connectivity. A massive Rs 64,000 crore has been allocated for Mumbai's infrastructure, encompassing road, metro, and transport network enhancements. This investment is expected to decongest key corridors, reduce travel times, and open up new growth nodes for residential and commercial development. The expansion of metro networks, with 41.2 km planned in Mumbai and 23.2 km in Pune and Nagpur, will significantly improve intra-city mobility, making transit-oriented development more viable and strengthening demand in emerging real estate corridors. The construction of a third airport to serve Mumbai is another significant infrastructure project that is expected to further enhance the city's connectivity and attract investment.
The allocation of Rs 1,500 crore for the Dharavi redevelopment project demonstrates the government's commitment to inclusive housing and slum rehabilitation, which are critical for Mumbai's urban landscape. This project aims to transform Dharavi, one of Asia's largest slums, into a modern, well-planned urban center, providing improved living conditions for its residents and unlocking significant real estate potential. The project is expected to involve the construction of new homes, commercial spaces, and social infrastructure, creating a vibrant and sustainable community.
The budget also includes provisions for enhancing transparency in real estate transactions. The introduction of ‘e-stamp certificates’ under the Maharashtra Stamp Act is expected to simplify the process of paying stamp duty and issuing property documents online, reducing paperwork and improving efficiency. This initiative will make it easier for buyers and sellers to transact in real estate, promoting transparency and reducing the scope for fraud.
The operationalization of Vadhvan Port in Palghar by 2030, along with a proposed third airport near the port and a Mumbai-Ahmedabad bullet train station, will further improve regional connectivity and attract commercial and residential development. These projects are expected to create new economic opportunities in the Palghar region, attracting investment and generating employment.
Furthermore, the government's plan to introduce a new housing policy is expected to bring about regulatory reforms and incentives to encourage private sector participation in affordable and mid-income housing projects. This policy could potentially ease project approvals, attract more investment into the sector, and accelerate the pace of housing development. The new policy is expected to address issues such as land availability, zoning regulations, and financing, creating a more conducive environment for private developers to invest in affordable housing projects.
Overall, the Maharashtra Budget for 2025-26 presents a comprehensive and forward-looking vision for the state's real estate sector. The emphasis on affordable housing, infrastructure development, and urban revitalization is expected to drive demand in both residential and commercial markets, creating new opportunities for developers, investors, and homebuyers. With Maharashtra's economy projected to grow at 7.3% in 2024-25, higher than the national estimate of 6.5%, increased urbanization and rising disposable incomes are expected to further support the real estate sector. The budget's focus on improving connectivity, easing housing shortages, and enhancing transparency in real estate transactions is expected to reinforce Maharashtra's position as a key real estate market in India. The substantial investments in housing and infrastructure, along with digital reforms to improve ease of doing business, set the stage for long-term growth and prosperity in the state's real estate sector.
The focus on mega multi-modal infrastructure projects will further strengthen Mumbai’s position as India’s growth engine, stated Niranjan Hiranandani, Chairman of the Hiranandani Group. The improvements on the Mumbai infrastructure specifically the Rs. 64,000 crore investment in road, metro and transport network enhancements, will help decongest key areas while making transit-oriented development more viable as stated by Gulam Zia, senior executive director, Knight Frank India. The budget highlights the government’s commitment to inclusive housing and slum rehabilitation for Mumbai’s urban landscape with the Rs 1,500 crore set aside for the Dharavi redevelopment project.
Industry experts believe that the new housing policy could potentially ease project approvals, attract more investment into the sector, and accelerate the pace of housing development in the state with proper implementations. The Maharashtra Stamp Act is expected to streamline paying for stamp duty and issuing property documents online while also reducing the amount of paperwork, adding to the transparency in real estate transactions. Overall this proposed financial budget, along with Maharashtra’s economy projected to grow at 7.3% in 2024-25, will create an environment of increased urbanization, rising disposable incomes, support for the real estate sector, substantial investments in housing and infrastructure, and digital reforms to improve the overall ease of doing business. All of these elements are expected to improve connectivity and policy support to reinforce Maharashtra’s position as a key real estate market in India for developers and investors in the long-term.
Source: Real estate set to gain as Maharashtra Budget focuses on infra, housing