Mumbai water crisis: BMC curbs threaten timelines for 1.43 lakh under-construction homes

An under-construction site in Wadala where water supply has been stopped. PIC/Atul Kamble

With the BMC withdrawing water supply to all construction sites in the city, experts have said Mumbai's real estate market may take a big hit over the next month.

Market research and builder information indicate that BMC's decision will directly disrupt timelines for completion of about 1.43 lakh homes. Its secondary impact would be on labourers in this sector, with construction projects being forced to a halt due to lack of water supply.

According to a study by Anarock Property Consultants, the Mumbai Metropolitan Region (MMR) accounts for about 69 per cent of under-construction homes, or 1.43 lakh home units due to be completed within 2026. The direct disruption from BMC's water curbs could be witnessed by real estate markets in South Mumbai, Bandra-Kurla Complex, Andheri, Borivli, and Mulund.

What is the expected impact?

According to a research, development progress is unlikely to stop immediately, as construction sites primarily rely on groundwater and non-potable sources for actual construction work, while the BMC supplies water mainly for labour welfare and drinking on-site. However, because BMC will not sanction new water connections until the reservoir levels are replenished, new project launches and handovers are likely to be stalled.

Voices

Shraddha Kedia Agarwal, director, Transcon Developers
‘The current restrictions are likely to affect project planning, resource allocation, and execution schedules, particularly for developments in advanced stages of construction. Beyond the immediate impact on timelines, developers will also have to manage higher operational costs arising from alternative water sourcing arrangements'

Amit Jain, chairman and managing director, Arkade Developers
‘The BMC's decision is necessary and understandable. While the real estate sector may face higher reliance on authorised water tankers and some operational challenges, significant project disruptions are unlikely. More importantly, this underscores the need for long-term water management solutions, with greater adoption of treated water, recycling systems, rainwater harvesting, and other sustainable alternatives to support the city's continued growth'

Kamlesh Thakur, president, NAREDCO Maharashtra
‘Construction activities such as concreting, curing, plastering, and finishing works are dependent on a reliable water supply. Any prolonged disruption could impact project schedules, increase construction costs, affect labour productivity, and delay the delivery of homes and infrastructure projects'

Ankur Sharma, spokesperson, Mumbai Water Tankers Association
‘Water tanker services are likely to increase substantially over the next month. However, we don't have adequate groundwater resources. We should be more concerned about the number of construction sites where work will come to a standstill over time, resulting in loss of employment for labourers. We will be doing our best to support the administration'