Rental Housing Push: Maharashtra Offers Major Incentives, Tax Waivers and Higher FSI for Developers

The Maharashtra Government has introduced a major shift in its housing strategy by giving strong priority to rental housing. Under the new policy, MHADA (Maharashtra Housing and Area Development Authority) aims to construct 8 lakh homes in the MMR (Mumbai Metropolitan Region) Growth Hub by 2030, with a significant portion dedicated to rental housing.

To encourage private developers to take up rental housing projects on a large scale, MHADA has framed an independent policy offering multiple benefits. The biggest attraction is 100% exemption on property tax for developers who build rental homes. In addition to this, developers will receive various other concessions, including:

Increased FSI (Floor Space Index)

Relaxation in premium charges

Simplified approval procedures

Incentives for timely completion of rental projects

These measures are designed to ease Mumbai’s long-standing housing stress and make affordable rental homes widely available for working families, migrants, and low-income groups.

The state believes that the rental housing model will help reduce pressure on ownership-based housing and ensure rapid availability of affordable accommodation. With private developers being offered substantial financial relief, MHADA expects large-scale participation from the real-estate sector before 2030.