MHADA Revises Premium and Payment Rules for Redevelopment

07 Oct 2025 CW Team

The Maharashtra Housing and Area Development Authority (MHADA) has revised its 2007 redevelopment policy to make the redevelopment of ageing housing societies in Mumbai financially sustainable.

The key change involves recalibrating premium charges for commercial floor space in projects under Regulation 33(5) of DCPR 2034. The new formula links premium rates to land value, market rate, and proposed usage, replacing the earlier rule that charged 1.5 times the residential rate for commercial areas.

Developers’ body CREDAI-MCHI had sought parity between residential and commercial rates to encourage balanced redevelopment. In addition, MHADA has allowed societies and developers to pay premiums for additional built-up area in four equal instalments with interest, aligning with similar provisions under the BMC’s policy.

The move is expected to accelerate redevelopment projects and unlock more housing supply across Mumbai’s older localities.

Infrastructure Urban

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