Mumbai: Mumbai’s real estate sector could face fresh challenges after the Brihanmumbai Municipal Corporation (BMC) suspended water supply to construction sites and imposed a 20 per cent reduction in water supply for commercial and industrial users amid a worsening water shortage.
According to civic authorities, water stock in Mumbai’s seven lakes has dropped to just 10.35 per cent of total storage capacity, prompting emergency conservation measures aimed at safeguarding drinking water supplies for the city’s residents.
Industry stakeholders say the restrictions, while necessary under the circumstances, could impact construction schedules, increase project costs and affect the timely delivery of housing and infrastructure projects if the shortage persists for an extended period.
Developers point out that water is a critical requirement for several stages of construction, including concreting, curing, plastering and finishing work. The suspension of municipal water supply is expected to increase dependence on private tanker operators and alternative sources, potentially adding to project costs and operational challenges.
NAREDCO Maharashtra President Kamlesh Thakur said the industry understands the need to prioritise drinking water requirements and supports responsible conservation measures during the current crisis. However, he cautioned that prolonged restrictions could affect construction timelines, labour productivity and housing delivery across Mumbai and the Mumbai Metropolitan Region (MMR).
Industry representatives have urged authorities to facilitate access to treated wastewater, recycled water and alternative sources to ensure construction activities can continue with minimal disruption. They have also called for faster approvals for alternative water arrangements and adequate availability of tanker supplies at reasonable rates.
Developers argue that the current situation underlines the need for a long-term shift towards sustainable water management practices, including treated water usage, rainwater harvesting, greywater recycling and expanded water recycling infrastructure.
Shilpin Tater, Managing Director of Superb Realty, said the crisis highlights the importance of adopting sustainable water management systems and reducing dependence on freshwater resources for construction activities.
Similarly, Shraddha Kedia Agarwal, Director of Transcon Developers, noted that the restrictions are likely to affect project planning and resource allocation, particularly for projects in advanced stages of construction where uninterrupted water availability is critical.
Dhruman Shah, Promoter of Ariha Group, said the situation demonstrates the need for greater resilience in urban infrastructure planning and accelerated adoption of sustainable construction practices.
The real estate industry has also sought regulatory support, including consideration of project timeline extensions in cases where developers can demonstrate delays directly linked to water shortages.
With the southwest monsoon expected to arrive shortly, developers remain hopeful that improving reservoir levels will allow civic authorities to review and eventually withdraw the restrictions. However, industry leaders believe the current crisis serves as a reminder that Mumbai’s long-term growth strategy must increasingly account for water security alongside housing and infrastructure development.
