MHADA Plans 13,012 Affordable Homes in Maharashtra with ₹17,430 Crore Budget for FY 2026–27

Maharashtra Housing and Area Development Authority has approved a ₹17,430.73 crore budget for FY 2026–27, with a target to construct 13,012 affordable housing units across Maharashtra. This marks a sharp increase from the revised ₹12,399.22 crore budget for FY 2025–26, signaling a stronger push toward affordable housing supply.

Key Budget Highlights

• Total Budget (FY27): ₹17,430.73 crore
• Construction Allocation: ₹10,585.12 crore
• Total Housing Units Planned: 13,012

A significant portion of the budget has been earmarked for construction, highlighting MHADA’s priority to expand housing availability across multiple income groups.

Region-Wise Housing Plan

The housing projects will be executed through MHADA’s regional boards in major urban and semi-urban regions including Mumbai, Pune, Konkan Region, Nagpur, Nashik, Amravati, and Chhatrapati Sambhajinagar.

Distribution of Housing Units:

• Mumbai: 2,538 units (₹6,747 crore allocation)
• Konkan: 5,112 units (largest share)
• Nagpur: 2,008 units
• Chhatrapati Sambhajinagar: 1,483 units
• Amravati: 969 units
• Pune: 665 units
• Nashik: 237 units

The Konkan and Mumbai regions together dominate the housing pipeline, reflecting strong demand in the Mumbai Metropolitan Region (MMR).

Focus on Redevelopment & Urban Renewal

Apart from new construction, MHADA is also investing heavily in urban infrastructure and redevelopment:

• ₹2,711.95 crore for Mumbai Slum Improvement Board projects
• ₹661.73 crore for repair of cessed buildings and transit housing

These allocations indicate a dual strategy—building new homes while upgrading old and unsafe structures, especially in dense urban areas like Mumbai.

Major Redevelopment Projects in Pipeline

According to officials, MHADA is actively working on large-scale redevelopment projects in key locations such as:

• Kamathipura
• Motilal Nagar
• Sion refugee colony

Construction activity is expected to accelerate once approvals are completed, which could significantly increase future housing supply in Mumbai.

PMAY Integration: New Land Acquisition in Mumbai

In a major boost to affordable housing under Pradhan Mantri Awas Yojana:

• The Maharashtra government has approved land acquisition in Borivali
• Land parcels from BSNL and MTNL will be used
• Estimated cost: ₹729 crore
• Expected output: 1,000+ housing units

This move aligns MHADA’s projects with central government housing initiatives, expanding supply in high-demand suburban zones.

Strong Demand for Affordable Housing

Recent data from the MHADA Lottery 2026 highlights the massive demand:

• Over 8,000 applications received within one week
• Only 2,640 units available in Mumbai

This demand-supply gap reinforces the need for large-scale housing initiatives like the FY27 plan.

Long-Term Impact on Real Estate

Experts believe MHADA’s expanded budget and housing targets will:

• Improve affordable housing availability statewide
• Stabilize property prices in high-demand markets
• Boost real estate activity and construction sector growth
• Support first-time homebuyers and MIG/LIG segments

Additionally, Maharashtra’s broader housing vision includes large-scale slum redevelopment and affordable housing expansion, further strengthening the sector.

Conclusion

The ₹17,430 crore MHADA budget and the target of over 13,000 homes mark a significant step toward addressing Maharashtra’s housing shortage. With parallel investments in redevelopment, infrastructure, and PMAY-linked projects, the initiative is expected to reshape the affordable housing landscape—particularly in high-pressure markets like Mumbai and the surrounding metropolitan region.