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MHADA has submitted a detailed proposal to the state government to boost affordable rental housing across the Mumbai Metropolitan Region. The plan, presented by MHADA CEO Sanjeev Jaiswal, recommends cost-reducing incentives such as 0.5 additional FSI in Mumbai city and 0.3 in the rest of MMR, along with a 50% share of development charges for societies to use as a corpus fund. Key tax benefits include full property-tax waiver for five years, reduced tax for the next five, INR 500 stamp duty, and complete state GST waiver. The proposal also suggests low-interest financing and income-tax exemptions. MHADA estimates the framework could enable over 50,000 rental units by 2030.
MHADA has shared a comprehensive proposal with the state government to support the development of affordable rental homes across the Mumbai Metropolitan Region. The plan was presented by MHADA CEO Sanjeev Jaiswal during a detailed stakeholder meeting, where he explained how a structured incentive framework could make rental projects more feasible for developers and institutional bodies. The proposal has been drafted to address financial, regulatory, and operational gaps that have slowed rental housing supply in recent years. Advertisement
Under the proposal, projects located within Mumbai city would receive an additional 0.5 FSI at no cost, while those in the rest of MMR would receive 0.3 extra FSI. Societies participating in such developments would receive 50% of development charges as a dedicated corpus fund for future upgrades and maintenance. MHADA has stated that these steps could reduce the overall cost burden for developers by around 15?20%.
The tax-related incentives form a major part of the proposal. Property tax on rental units would be completely waived for the first five years and would be reduced by 50% for the following five years. Stamp duty and registration fees would be fixed at INR 500, allowing projects to avoid high upfront transaction costs. The proposal also seeks a full waiver of state GST for designated rental housing projects. MHADA has included a 100% income-tax exemption for ten years for approved rental developments, which is expected to help reduce operational expenses and support stable rental pricing.
Financial support mechanisms have also been outlined. Developers may receive access to financing at interest rates as low as 6% through partnerships with banks and financial institutions. The proposal includes accelerated capital-investment benefits, such as quicker depreciation allowances, which can help improve project viability during the construction and early-operation phases.
MHADA estimates that if the incentive package is approved, over 50,000 rental units could be developed across MMR by 2030. The plan aligns with the objectives set under the Maharashtra Housing Policy 2025 and is consistent with the state cabinet?s earlier decisions on encouraging redevelopment and expanding housing options. MHADA has also highlighted that the proposal supports the broader goal of balancing ownership-based housing with long-term rental solutions.
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