In a metropolis like Mumbai, buying one's own home has become an unattainable dream for the youth. Even young professionals with good salaries cannot afford to purchase a small 1BHK apartment. The sharp rise in land prices, increased construction costs, and government duties have raised housing costs so much that acquiring a home is becoming an increasingly difficult task for working people.
Abhinandan Lodha, founder and chairman of the real estate development company The House of Abhinandan Lodha, expressed serious concern about rising housing prices and the housing crisis in Mumbai. Discussing housing affordability in the city with one news channel, he noted that despite the high income of young people, purchasing a home has become virtually impossible due to high land prices and city taxes.
He emphasized: 'People who earn well want to live close to the city. They do not want to spend hours commuting from distant areas like Naigaon or Vasai to get to work. Land prices and city taxes have risen so much that buying a home has become extremely difficult for the youth.'
Lodha explained the difference between affordable housing and the actual ability of the population to buy housing. According to him, the demand for homes priced under 50-60 million rupees is very high, but for developers, creating and selling housing in this price segment presents a major problem. He stated that significant government support is required to provide housing in this category.
He mentioned that his company launched a residential project in Naigaon, Mumbai, where all apartments were priced below 50 million rupees. To achieve this, the company implemented changes in sales and marketing methods using technology, which allowed it to reduce the overall project cost by 22 percent. According to Lodha, the company managed to sell 1500 apartments online in just one day.
Lodha believes that simply increasing FSI (Floor Space Index) will not help lower housing prices in Mumbai. FSI determines the area that can be built on a plot; increasing it will allow for more buildings to be erected, but simultaneously increase the strain on roads, water supply, electricity, and other basic infrastructure.
He added that construction costs will continue to rise, and completely stopping this process is impossible. Therefore, the government needs to take measures to provide land at lower prices, reduce premium charges, and decrease expenses such as stamp duty. In Lodha's opinion, only large-scale support and facilitation from the government will allow control over housing prices in cities.
During the discussion on the affordable housing issue, developer Niranjan Hirandani also expressed concern. He noted that the situation with affordable housing in the country has become extremely difficult and is on the verge of disappearing. According to Hirandani, the combined cost of land, construction expenses, development costs, and government levies pushes housing beyond the reach of ordinary citizens. He argued that if a developer sells a house in Mumbai for 40,000 rupees per square foot, then 20,000 rupees per square foot goes to the government.
Hirandani warned that if the government and the real estate industry do not find a joint solution to this problem, both sides will suffer in the future.
