Building Affordable Housing: Lessons from Maharashtra’s Urban Story

Housing is one of the most pressing challenges of our time, especially in rapidly urbanizing regions. Whether you're a policymaker, a developer, or a concerned citizen, ensuring that everyone has access to affordable housing is a shared responsibility. Maharashtra, one of India's most urbanized states, offers lessons on how to address this challenge with innovation, collaboration, and foresight.

Why Affordable Housing Matters

As cities expand, they attract people from all walks of life—students, professionals, laborers, and families. However, the demand for affordable housing often outpaces supply. Over the past few years, the share of affordable housing in the Indian market has been shrinking, with supply shifting toward premium housing. Yet, the need for affordable homes remains critical, especially for low- and middle-income families.

Maharashtra, with its mix of bustling metros like Mumbai and Pune and smaller cities like Nagpur, has been grappling with this issue for decades. What stands out is how the state has approached housing with a blend of policy innovation, public-private partnerships, and community-centric solutions.

Key Innovations in Maharashtra’s Housing Policies

1. The Rise of Navi Mumbai:

   Navi Mumbai’s development as a greenfield city stands out as one of India’s earliest and most successful urban planning experiments. Conceived in 1973, it was built not just with smart town planning but also with a focus on land economics and financial sustainability. By connecting Navi Mumbai to its mother city through railways and highways, planners ensured accessibility and affordability. The success of Navi Mumbai serves as a blueprint for creating housing stock in other cities.

   
   

2. Slum Rehabilitation Authority (SRA):

   Slum redevelopment has been a cornerstone of Maharashtra's approach to affordable housing. Programs like the Slum Rehabilitation Authority (SRA) have enabled in-situ development, allowing residents of informal settlements to move into formal housing without being displaced. By offering additional Floor Space Index (FSI) as an incentive, the government has encouraged private developers to participate, resulting in thousands of new housing units.

   
   

3. Public Policy with People at the Center:

   One of the most impactful ideas discussed was the shift from a government-centric to a whole-of-society approach. Affordable housing cannot succeed unless policymakers, private players, and local communities come together. Maharashtra’s experiments with cooperative housing societies, rental housing near industrial areas, and leveraging government land for affordable projects have showcased the power of collaboration.

   
   

4. Leveraging Technology for Urban Planning:

   Technology is playing a pivotal role in modernizing Maharashtra’s housing sector. Tools like satellite mapping, digital city simulations, and AI-driven planning models are enabling planners to make data-driven decisions. For example, planners can simulate the impact of high-FSI development on city infrastructure and ensure projects are financially and environmentally sustainable.

   
   

What Can Other Cities Learn?

Maharashtra’s experience offers valuable lessons for cities across India and beyond:

1. Plan for Growth, Not Crisis:

   Urbanization is inevitable, so cities need to plan for it instead of reacting to its challenges. Allocating land for affordable housing in master plans and reserving space for rental housing near economic hubs can prevent the formation of slums.

   
   

2. Incentivize Developers:

   Policies like additional FSI and Transferable Development Rights (TDR) can make affordable housing projects attractive to private developers. This approach allows governments to create housing stock without bearing the entire financial burden.

   
   

3. Invest in Public-Private Partnerships:

   Maharashtra’s affordable housing achievements are a testament to the power of collaboration. From redevelopment projects to cooperative housing societies, partnerships have been the backbone of many successful initiatives.

   
   

4. Embrace Technology:

   Digital tools can speed up processes like land allocation, approvals, and urban simulations, ensuring transparency and efficiency. They also enable long-term planning by helping policymakers understand the ripple effects of housing decisions.

The Road Ahead

Affordable housing isn’t just about bricks and mortar—it’s about dignity, security, and opportunity. As cities grow, they must balance their aspirations for modernity with inclusivity, ensuring no one is left behind.

As Maharashtra shows, innovation and collaboration can make affordable housing a reality. To quote a timeless adage, "It takes a village to raise a child—and it takes a city to house its people."

If you’re a policymaker, a developer, or someone passionate about urban living, let Maharashtra’s story inspire you to take action in your own city. After all, the dream of a home should be within everyone’s reach.

Speakers Profile: Sameer Unhale, State Joint Commissioner, Municipal Administration, Maharashtra. Working over two decades in urban issues having worked as CEO smart cities, Municipal Commissioner, and Mission Director of SBH. have authored books, singularities of Municipal Finance, etc.