The government of Maharashtra’s major allocations for affordable housing, infrastructure expansion, and urban development in its Budget for the financial year 2025-26 is expected to provide a strong impetus to the real estate sector.
Several key infrastructure projects announced in the budget including the third airport to cater to the country’s financial capital Mumbai are expected to enhance real estate prospects in the state.
With a focus on improving connectivity and easing housing shortages, the state government’s initiatives are expected to drive demand in both residential and commercial markets across the state including key property markets of Mumbai, Pune, and Nashik.
“The Maharashtra budget presents a robust framework that is poised to significantly accelerate economic growth through its strategic focus on mega multi-modal infrastructure projects. This visionary roadmap will undoubtedly enhance connectivity, stimulate commercial and industrial development, and further strengthen Mumbai’s position as India’s growth engine,” said Niranjan Hiranandani- Chairman- Hiranandani Group.
A major highlight of the budget is the Rs 15,000 crore allocation for rural housing under Pradhan Mantri Awas Yojana (PMAY) Phase-2, targeting the construction of 2 million homes. Additionally, Rs 8,100 crore has been set aside for urban housing under PMAY (Urban), to help achieve the stated objective of ‘Housing for All.’
“The substantial Rs 64,000 crore investment in Mumbai’s infrastructure, including road, metro, and transport network enhancements, will help decongest key corridors and open new growth nodes for residential and commercial development. The expansion of metro networks, with 41.2 km in Mumbai and 23.2 km in Pune and Nagpur, will improve intra-city mobility, strengthening demand in emerging real estate corridors and making transit-oriented development more viable,” said Gulam Zia, senior executive director, Knight Frank India.
The Rs 1,500 crore set aside for the Dharavi redevelopment project, according to him, underscores the government’s commitment to inclusive housing and slum rehabilitation, critical for Mumbai’s urban landscape.
According to Hiranandani, the emphasis on infrastructure investments will act as a multiplier, unlocking new opportunities across sectors while driving real estate demand. Enhanced connectivity and improved logistics corridors will catalyze commercial expansion, attracting investments and creating employment opportunities.
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 improve regional connectivity and attract commercial and residential development.
The government has also announced plans to introduce a new housing policy, which could bring regulatory reforms and incentives to encourage private sector participation in affordable and mid-income housing projects. According to industry experts, with effective implementation, this policy could ease project approvals and attract more investment into the sector.
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.
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.
With substantial investments in housing and infrastructure, along with digital reforms to improve ease of doing business, the budget sets the stage for long-term growth. Developers and investors are expected to benefit from improved connectivity and policy support, reinforcing Maharashtra’s position as a key real estate market in India.
