'Even well-earning youngsters can't buy homes in Mumbai': Abhinandan Lodha flags affordability crisis
Rs 50-60 lakh category requires a tremendous amount of support from the government. It has great demand, but it's very, very difficult to supply at those prices, says Abhinandan Lodha
- Nov 3, 2026,
- Updated Nov 3, 2026 5:00 AM IST
Buying a home in Mumbai has become nearly impossible for young professionals, even those earning well, real estate developer Abhinandan Lodha has warned. He said soaring land prices, construction costs, and government levies have pushed property prices beyond the reach of many young buyers.
Lodha, founder and chairman of The House of Abhinandan Lodha, said the housing affordability crisis was particularly severe for young professionals who want to live closer to their workplaces rather than spend hours commuting from distant suburbs.
"People who are earning well want to live closer to the city. They don't want to travel from Nayagaon or Vasai to come to work to Mumbai; the cost of land in the city and the cost of taxes, etc have gone so high that it is simply impossible for youngsters now to be able to buy houses," Lodha said while speaking at News18's Rising Bharat Summit in Mumbai.
His remarks came during a discussion on housing affordability, where the panel was asked why even professionals entering their 30s were finding it difficult to purchase a basic one-bedroom apartment in Mumbai.
Read More: Affordable housing crisis: Hiranandani wants companies, banks and Tata trusts to build rental homes
'Affordable housing and affordability are not necessarily the same'
Lodha drew a distinction between affordable housing, typically referring to homes priced below Rs 50-60 lakh, and the broader challenge of making homes accessible to people who want to live in central Mumbai. "I think there is a problem of affordability and then there's affordable housing, and probably the two are not necessarily the same," he said.
He explained that while demand for homes priced below Rs 50-60 lakh remains strong, building and selling properties at those prices requires substantial government support. "That category requires a tremendous amount of support from the government. It has great demand, but it's very, very difficult to supply at those prices," Lodha said.
To illustrate how developers can reduce costs, he cited a housing project in Nayagaon, near Mumbai, where his company used technology and changes to its sales and marketing strategy.
"We recently did a development in Nayagaon where we launched everything sub 50 lakhs. We innovated on the side of sales and marketing. We cut down our overall project cost by 22%. And we sold 1,500 apartments online in one day," he said.
Lodha maintained that technology could play an important role in reducing the cost of delivering affordable housing. However, he argued that making homes affordable within Mumbai itself was a much more difficult challenge because of the high cost of land and government-imposed charges.
'FSI is not going to solve it'
Lodha called for government intervention to make urban housing more affordable. "I think what is required is incentives, lower rates, probably, lower premiums. Construction cost is going to keep rising; there's no way you can counter that," he said.
"So unless the government steps in in a big way, either makes more land available at lower prices. I don't think FSI is going to solve it either because the more and more FSI you release, you need to build more and more infrastructure; your construction costs keep going up," the realtor explained.
Floor Space Index (FSI) determines how much construction is permitted on a given plot of land. Although higher FSI can allow more homes to be built, Lodha argued that it also increases the requirement for supporting infrastructure.
"It's more about either finding a way to make land more affordable or bringing down overall pricing, which is either stamp duty, premiums etc. Otherwise affordability will continue to suffer while affordable housing may take off," he said.
Hiranandani warns affordable housing 'doesn't exist'
Real estate veteran Niranjan Hiranandani, who was also part of the panel, also warned that affordable housing is becoming a crisis.
"Affordable housing is destroyed. It doesn't exist," he said. "Because land, construction costs, development and government charges put together have made it unaffordable. It's a segment of housing which is a disaster. Government and industry will one day pay for it."
Hiranandani also highlighted the role of government-related costs in driving up Mumbai property prices. "For instance, when I sell a house for 40,000 rupees a square foot in Mumbai, 20,000 goes to government first," he claimed, referring to the cumulative impact of land-related and statutory expenses.
Buying a home in Mumbai has become nearly impossible for young professionals, even those earning well, real estate developer Abhinandan Lodha has warned. He said soaring land prices, construction costs, and government levies have pushed property prices beyond the reach of many young buyers.
Lodha, founder and chairman of The House of Abhinandan Lodha, said the housing affordability crisis was particularly severe for young professionals who want to live closer to their workplaces rather than spend hours commuting from distant suburbs.
"People who are earning well want to live closer to the city. They don't want to travel from Nayagaon or Vasai to come to work to Mumbai; the cost of land in the city and the cost of taxes, etc have gone so high that it is simply impossible for youngsters now to be able to buy houses," Lodha said while speaking at News18's Rising Bharat Summit in Mumbai.
His remarks came during a discussion on housing affordability, where the panel was asked why even professionals entering their 30s were finding it difficult to purchase a basic one-bedroom apartment in Mumbai.
Read More: Affordable housing crisis: Hiranandani wants companies, banks and Tata trusts to build rental homes
'Affordable housing and affordability are not necessarily the same'
Lodha drew a distinction between affordable housing, typically referring to homes priced below Rs 50-60 lakh, and the broader challenge of making homes accessible to people who want to live in central Mumbai. "I think there is a problem of affordability and then there's affordable housing, and probably the two are not necessarily the same," he said.
He explained that while demand for homes priced below Rs 50-60 lakh remains strong, building and selling properties at those prices requires substantial government support. "That category requires a tremendous amount of support from the government. It has great demand, but it's very, very difficult to supply at those prices," Lodha said.
To illustrate how developers can reduce costs, he cited a housing project in Nayagaon, near Mumbai, where his company used technology and changes to its sales and marketing strategy.
"We recently did a development in Nayagaon where we launched everything sub 50 lakhs. We innovated on the side of sales and marketing. We cut down our overall project cost by 22%. And we sold 1,500 apartments online in one day," he said.
Lodha maintained that technology could play an important role in reducing the cost of delivering affordable housing. However, he argued that making homes affordable within Mumbai itself was a much more difficult challenge because of the high cost of land and government-imposed charges.
'FSI is not going to solve it'
Lodha called for government intervention to make urban housing more affordable. "I think what is required is incentives, lower rates, probably, lower premiums. Construction cost is going to keep rising; there's no way you can counter that," he said.
"So unless the government steps in in a big way, either makes more land available at lower prices. I don't think FSI is going to solve it either because the more and more FSI you release, you need to build more and more infrastructure; your construction costs keep going up," the realtor explained.
Floor Space Index (FSI) determines how much construction is permitted on a given plot of land. Although higher FSI can allow more homes to be built, Lodha argued that it also increases the requirement for supporting infrastructure.
"It's more about either finding a way to make land more affordable or bringing down overall pricing, which is either stamp duty, premiums etc. Otherwise affordability will continue to suffer while affordable housing may take off," he said.
Hiranandani warns affordable housing 'doesn't exist'
Real estate veteran Niranjan Hiranandani, who was also part of the panel, also warned that affordable housing is becoming a crisis.
"Affordable housing is destroyed. It doesn't exist," he said. "Because land, construction costs, development and government charges put together have made it unaffordable. It's a segment of housing which is a disaster. Government and industry will one day pay for it."
Hiranandani also highlighted the role of government-related costs in driving up Mumbai property prices. "For instance, when I sell a house for 40,000 rupees a square foot in Mumbai, 20,000 goes to government first," he claimed, referring to the cumulative impact of land-related and statutory expenses.