Mumbai Real Estate Poised for Transformative Reforms

Mumbai’s real estate sector stands at a critical juncture as government reforms and industry focus converge to address pressing challenges. Boman Rustom Irani, Chairman and Managing Director at Keystone Realtors, highlighted the dire need for affordable housing and slum redevelopment in the city. With slums comprising a significant portion of Mumbai’s urban landscape, achieving a slum-free city has become a pivotal goal. Irani suggests a renewed push for rental housing schemes, where the government builds homes and private enterprises manage them, a model proven successful globally.

In addition, infrastructure development in peripheral areas like Navi Mumbai, Vasai, and Dombivli offers promising opportunities. Irani advocates for incentives such as reduced stamp duties and tax benefits to encourage affordable housing projects in these regions. However, the high taxation burden—accounting for up to 32% of a home’s value—remains a key obstacle. Rationalising these taxes could make homeownership more accessible for the city’s growing population. Meanwhile, experts like Gulam Zia from Knight Frank India emphasise the need to focus on commercial real estate in Mumbai and Pune, citing prohibitive pricing in the residential segment as a deterrent for investors.

From a sustainability perspective, slum redevelopment and affordable housing are vital for Mumbai’s long-term urban planning. A structured approach to waste management, energy-efficient buildings, and community-focused developments can enhance the city’s ecological balance. Developing sustainable housing solutions will not only mitigate environmental strain but also ensure equitable growth for all socioeconomic segments.

As Mumbai eyes these ambitious reforms, its challenges highlight the need for integrated policies to align urban growth with civic priorities. Addressing issues such as infrastructure strain, waste management, and housing affordability will not only enhance the quality of life but also position the city as a beacon of sustainable urbanisation.