Hiranandani Warns Affordable Housing Crisis Could Deepen Without Policy Steps

What Hiranandani said

Speaking at a summit in Mumbai, Niranjan Hiranandani said the industry's inability to deliver affordable homes was becoming a serious economic and social challenge. He warned that the crisis could deepen over the next few years unless urgent policy interventions are introduced.

Asked why reputed developers are increasingly moving away from homes priced below Rs 50 lakh, he said: 'Affordable housing has been destroyed. It doesn't exist.'

Government charges and why he expects them to stay

Hiranandani argued that government-imposed charges are a major reason property prices are rising, which leaves developers little room to make homes cheaper. His illustration: 'For instance, when I sell a house for 40,000 rupees a square foot in Mumbai, 20,000 goes to government first.' These are his own figures and have not been checked against official data.

On whether these charges will fall, he said the government needs the money to fund metro, roads and other works, and that 'they're not going to reduce it.' He also said stamp duty and ready reckoner rates were unlikely to be lowered.

He added that land costs, regulatory charges and inflation could make housing even less affordable, and linked inflation to US President Trump, saying the combined effect 'is going to make it even more unaffordable.'

Figures he has cited, by date

Hiranandani has given different figures on the fall in affordable housing at different times. Each is reported here with its own date:

• February 2026: at the National Urban & Real Estate Development Conclave, he put the decline at 15 to 20 percent. He said the biggest problem in housing is the affordable segment.
• May 2026: in a television interview, he said he had 'never seen in my 45 years plus of business the downfall of affordable housing to the extent to which it has taken place in the last 20 months.' He suggested rental housing could become a long-term solution, similar to the commercial real estate model.
• June 2026: he said 'Affordable housing has declined by 20% over the last 24 months.' He said the slowdown is largely concentrated in the affordable segment, and other segments have not seen such declines.

He also cited a past precedent. He said that during COVID the Maharashtra government reduced stamp duty by 50 percent and waived other charges, and called on central and state governments to offer relief through reduced charges, stamp duty cuts or tax incentives.

Mumbai stamp duty, registration and ready reckoner rates

As of 11 March 2026, stamp duty in Mumbai is 6 percent for male buyers and 5 percent for female buyers. Both rates include a mandatory 1 percent Metro Cess, a surcharge the Maharashtra government levies on top of base stamp duty to fund metro rail infrastructure.

Registration charges are 1 percent of property value, capped at Rs 30,000 for properties valued above Rs 30 lakh.

IGR Maharashtra confirmed that ready reckoner rates for the 2026-27 financial year would stay at status quo, frozen at the levels set a year earlier. The previous year's Mumbai ready reckoner rise was about 3.39 percent for FY 2025-26.

Registrations rose in early 2026. March 2026 recorded 15,516 registrations, a 14-year high for March, and the first quarter of 2026 totalled 40,231 registrations.

What it means for buyers, investors and the market

For buyers below Rs 50 lakh, Hiranandani's reading is that the cost burden from government charges, land prices and inflation will keep such homes out of reach. This is his own assessment. No independent analyst or investor view on the remark has been reported in the coverage of it.

He said the number of affordable homes being built has dropped sharply, even though the wider market has grown. For buyers, the charges he described are fixed costs on each purchase, and the stamp duty and registration rates above apply to any Mumbai transaction as of the date stated.

What comes next

Hiranandani has called for relief through lower charges, stamp duty cuts or tax incentives, and has said he expects those charges to remain. As of 2 November 2026, the ready reckoner rates for FY 2026-27 are frozen at last year's levels, and the Mumbai stamp duty rates listed above remain in force. Any change would depend on decisions by the central and state governments.

About Hiranandani Group

Hiranandani Group describes itself as a premium developer with more than 40 years in the business, dating its inception to 1978. It pioneered the mixed-use integrated township model in India and has diversified into education, healthcare, hospitality, infrastructure, entertainment and organised retail. Its flagship Mumbai-area townships are Hiranandani Gardens in Powai and Hiranandani Estate in Thane.

Under its Hiranandani Communities arm, the group has handed over Forest Enclave (over 1,200 apartments) and Garden Enclave (over 1,100 apartments) at Hiranandani Fortune City, Panvel, and The Highlands - South (over 800 apartments) at Hiranandani Parks, Oragadam, Chennai.

In 2025, the group signed two Mumbai societies in Bandra and Versova for redevelopment, covering approximately 2,00,000 sq ft of saleable area. In Pune, it has a 50:50 joint venture with Krisala Developers for a 105-acre township in North Hinjewadi, with a Rs 2,000 crore land investment and Rs 7,000 crore revenue potential.