By Arosh John | Founder – John Real Estate (MahaRERA Reg. No. A51700001835) | Editor-in-Chief – Thane Real Estate News (TREN)
Thane–MMR | November 2025
Maharashtra had introduced a significant reform push to unlock large-scale rental housing across the Mumbai Metropolitan Region (MMR). The state’s draft rental housing policy, anchored by MHADA as the nodal authority, proposes strong incentives for developers who create, operate or convert inventory into organised rental stock.
The government aims to reduce housing pressure in Mumbai, support the migrant and working population, and expand structured rental options. These benefits will extend across MMR, including Thane, Kalyan–Dombivli, Mira–Bhayandar, Bhiwandi and Navi Mumbai.
Key Policy Incentives for Developers
The draft framework currently under consideration by the Government of Maharashtra includes a mix of financial and planning incentives:
• 10-year income-tax exemption on rental income from eligible projects.
• 5-year property tax waiver to support project viability.
• Concessional interest-rate loans to reduce borrowing costs.
• Additional free FSI for qualifying rental developments, with higher limits in Mumbai and scaled benefits across MMR.
• MHADA is the coordinating authority for planning, land use and project monitoring.
• Permission to convert unsold residential stock into rental units under defined rules.
• Clear tenure categories, covering short-term, medium-term and long-term rentals.
Together, these incentives aim to make rental housing a viable, independent real estate asset class, similar to global build-to-rent models.
MMR Focus: How Thane Stands to Benefit
Thane stands out as one of the strongest beneficiaries of the draft policy. The city continues to attract professionals, students, and new job seekers. As a result, rental demand in Thane remains high and consistent.
Furthermore, the region still offers large land parcels suitable for planned rental clusters. Areas such as Kalher, Kolshet Belt, Kasarvadavali, Balkum, Majiwada outskirts and the Kalyan–Shil corridor provide strong development potential. Developers can therefore plan scalable projects supported by additional FSI and tax incentives.
The proposed framework also encourages the development of build-to-rent models. With improved feasibility and long-term rental income, developers may shift a part of their pipeline to rental-only or hybrid formats. This change could introduce more organised rental options across Thane.
In addition, several peripheral MMR markets hold unsold or slow-moving inventory. Developers can now convert this stock into rental housing. This move reduces carrying costs and adds fresh supply for tenants who prefer managed rental accommodation. As a result, Thane may see a more structured rental ecosystem in the coming years.
What This Means for Investors, Landlords and Homebuyers
The draft policy reshapes several parts of the market:
• Organised rental supply will bring more clarity, structure and transparency to the system.
• Institutional rental projects may gradually improve yields in well-connected micro-markets.
• Individual landlords may face higher competition, yet within a cleaner regulatory framework.
• Investors may view rental housing as a stable, income-generating asset supported by tax benefits.
Tenants, on the other hand, will gain access to professionally managed, regulated rental homes with clear standards and accountability.
Policy Intent: Expanding Access and Mobility
The government aims to support a wide range of users, including:
• Migrant workers
• Students
• Service-industry employees
• Urban poor and EWS households
• Individuals shifting between jobs or homes
By boosting rental supply, Maharashtra seeks to ease pressure on ownership-centric corridors and build a more flexible, mobile and inclusive housing environment.
What Comes Next
The rental housing framework is currently in the draft stage. The government will now conduct consultations with developers, industry bodies, planners and municipal authorities across MMR.
Once notified, the policy could become one of Maharashtra’s most impactful rental-housing reforms. It has the potential to bring the state closer to structured rental markets seen globally.
For Thane, this shift could reshape micro-market dynamics, support long-term rental developments, and expand housing choices for residents and investors.
About the Author
Arosh John is the Founder of John Real Estate (MahaRERA Reg. No. A51700001835) and Editor-in-Chief of Thane Real Estate News (TREN).
With over a decade of experience in Thane’s residential, villa, premium resale, and NRI advisory segments, he is recognised as one of the emerging voices of Thane’s new-age real estate ecosystem. His work blends on-ground insight with data-backed reporting to guide buyers, investors and developers in the Thane–MMR region.
Disclaimer
This report is based on publicly available information, government-led discussions and policy drafts. Readers should refer to official government notifications for final details once issued. For legal or transaction-related decisions, consult a qualified real-estate lawyer or professional advisor.
