Maharashtra Election Could Shape Mumbai Real Estate: Industry Leaders Weigh In

Prominent real estate leaders believe that the outcome of Maharashtra’s elections could significantly influence Mumbai’s real estate property market. Speaking to NDTV Profit, industry veterans noted that stability in governance, coupled with alignment between state and central governments, could streamline approvals, boost infrastructure development, and address affordability challenges.

“If there is stability, the clearance of projects will be smoother, policies for the next five years will be consistent, and infrastructure like roads and connectivity can expand,” said Anuj Puri, Chairman of Anarock Group, adding that an aligned government would further accelerate these processes.

Despite high demand, the Mumbai Metropolitan Region real estate market faces challenges with project launches. “The biggest issue is not demand but the inability to launch new projects due to approval delays. Unsold inventory is at an all-time low, and if supply doesn’t increase, prices will keep rising,” Puri said.

The government’s commitment to slum redevelopment and faster approvals are all positive developments for the sector, said Boman Irani, Chairman and Managing Director of Keystone Realtors. “The redevelopment sector has immense potential, and the government’s focus on slum-free Mumbai is a great step forward,” he said.

Speaking on affordable housing, Dhaval Ajmera, Director of Ajmera Realty & Infra India Ltd., spoke on the need to redefine how housing affordability is measured. He pointed out that the government currently uses both price and size to categorise affordable housing, with a cap of Rs 45 lakh. 

However, in a city like Mumbai, where prices are significantly higher, this dual criterion excludes many potential units. Ajmera suggested focusing solely on size, such as apartments up to 600 square feet, which could bring 60-70% of apartments into the affordable category. “By removing the price cap and measuring affordability based on size alone, we could fundamentally reshape the market,” he said.

Commercial real estate is also gaining traction, with areas like Bandra Kurla Complex, Lower Parel, Andheri, and Thane emerging as hotspots. Ajmera Realty and Keystone Realtors are collaborating on commercial projects, including a major development in Bandra, said Irani. 

However, profitability remains under pressure, with rising costs and high government premiums. “We’re hopeful for a rationalisation of premiums and a reduction in stamp duty to maintain price stability,” he said, adding that the sector may see a 5-10% dip in margins.