The BJP-led Mahayuti alliance’s landslide victory in Maharashtra has raised expectations of policy reforms to address key challenges in Mumbai’s real estate sector.
In a conversation with CNBC-TV18, experts outlined key areas where the government could make a tangible impact, addressing affordable housing and infrastructure challenges.
Boman Rustom Irani, Chairman and Managing Director of Keystone Realtors, highlighted three ways the government could support affordable housing in Mumbai.
First, he suggested reviving rental housing schemes, where the government builds housing and private enterprises manage and operate them.
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“Around the world you see cities developing on the back of good housing created by the government and then run by private enterprise on a rental housing model. That is very possible for the city of Mumbai,” he said.
Second, Irani emphasised the importance of incentivising development in peripheral areas like Navi Mumbai, Vasai, and Dombivli, which are becoming more accessible due to improved infrastructure.
He proposed measures such as reduced stamp duties or tax benefits to encourage affordable housing projects.
Lastly, he pointed out that taxes currently account for up to 32% of a home’s value in Mumbai, inflating costs for buyers. Rationalising these taxes could make housing more affordable.
He expects policy that allows for better development to take place, especially with a focus on the redevelopment space in Mumbai.
Irani also emphasised that Mumbai faces significant challenges with its slum areas, and the BJP’s commitment to creating a slum-free city is a key focus.
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Gulam Zia, Senior Executive Director at Knight Frank India believes Maharashtra is poised to regain industrial focus, which had been lacking in recent years.
From an investor’s perspective, Zia advises against residential real estate, citing high prices in mid-to-upper housing segments.
“Prices have already risen up, especially in the mid to upper end, beyond any reasonability. Hence, any investment perspective for residential real estate is definitely out of question,” he noted.
Instead, he recommended focusing on commercial real estate in Mumbai and Pune, which continue to offer robust opportunities for investors.