By | Arvind Jadhav
Mumbai: The Maharashtra government has taken a significant step towards streamlining the redevelopment of old buildings in the state with the introduction of the Maharashtra Housing Policy 2025. Approved by the state cabinet in May and followed by a Government Resolution (GR) on July 23, the policy seeks to bring redevelopment projects under a new legal framework similar to the Real Estate Regulatory Authority (RERA).
At present, redevelopment projects are not covered under the Real Estate Regulatory Authority Act, 2016, leaving numerous complaints unaddressed by MahaRERA. The proposed RERA-like law aims to fill this gap, ensuring transparency, accountability, and timely resolution of disputes in redevelopment ventures.
Redevelopment: Transforming Maharashtra’s Skyline
In cities across Maharashtra, thousands of old structures — mainly two to seven-storey buildings — are undergoing redevelopment. The process typically involves demolishing aging structures and replacing them with modern, larger residential complexes.
Under this model, existing residents receive spacious new flats free of cost, while builders generate profits by selling additional apartments on the open market. The government, in turn, earns revenue by selling Floor Space Index (FSI) rights to developers.
A Step Towards Implementation
The new housing policy marks a major policy shift aimed at regulating one of the most significant real estate sectors in the state. With the proposed law, the government hopes to protect the interests of homeowners, bring clarity for developers, and boost confidence in Maharashtra’s rapidly growing real estate market.
