Maharashtra has fallen short of its target to build 1.94 million affordable housing units by March 2024, sanctioning only 1.36 million units and completing 0.84 million. This leaves a significant gap of 5.75 lakh units, impacting low- and middle-income residents. To bridge this deficit, the state is leveraging public-private partnerships (PPPs), approving 10 joint ventures to construct over 47,000 homes for economically weaker sections and low-income groups. Industry experts advocate for tax incentives and streamlined approvals to further stimulate affordable housing development. Maharashtra's focus on PPPs signals a proactive step, yet comprehensive strategies are essential to meet housing needs effectively.
Maharashtra fell short of its target for building affordable housing units in urban areas by a significant margin, according to the state's economic survey. This shortfall leaves many low- and middle-income residents struggling to find suitable housing options.
The state aimed to build 1.94 million (19.4 lakh) affordable housing units under the Pradhan Mantri Awas Yojana (Urban) by March 2024. However, they only managed to sanction 1,630 projects, offering 1.36 million (13.65 lakh) dwellings. Of these sanctioned units, only 0.84 million (8.42 lakh) have been completed, leaving a gap of 5.75 lakh units.
Experts believe that public-private partnerships (PPPs) hold the key to bridge this gap and address the urgent housing needs of low- and middle-income residents. The state government is already taking steps in this direction.
The economic survey highlights the approval of 10 joint venture projects between private landowners and the Maharashtra Housing Development Corporation. These projects aim to build over 47,000 homes specifically for economically weaker sections (EWS) and low-income groups (LIGs). This includes 43,309 homes for EWS and 4,033 for LIGs. Construction for six of these projects has already begun, aiming to provide over 15,000 homes (12,924 EWS and 2,458 LIG).
Industry experts have offered suggestions to further incentivise affordable housing development. Anuj Puri, Chairman of Anarock Group, proposes tax breaks for developers. Additionally, Credai national council member Shantilal Kataria emphasises the importance of providing land for affordable housing projects and streamlining approvals through a single-window clearance system.
The Maharashtra government's focus on PPPs offers a promising approach to bridge the affordable housing gap. However, a multi-pronged strategy is needed. Implementing tax benefits, land allocation, and streamlined approvals alongside PPPs can help the state achieve its affordable housing goals and ensure everyone has access to safe and secure housing.
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