Developers warn of delivery risks. Plead for alternative sources
MUMBNAI, June 17 (The CIONNECT) – Mumbai’s real estate sector could face significant disruptions after the Brihanmumbai Municipal Corporation (BMC) suspended water supply to construction sites and imposed a 20% cut on commercial and industrial users amid rapidly declining reservoir levels.
With water storage in the city’s seven lakes falling to a critical 10.35% of total capacity, developers fear the restrictions could affect construction schedules, increase project costs and delay deliveries if the crisis persists.
Industry stakeholders have urged authorities to facilitate access to alternative water sources and provide regulatory support to minimise the impact on ongoing developments across Mumbai and the Mumbai Metropolitan Region (MMR).
Kamlesh Thakur, President, NAREDCO Maharashtra and Co-Founder & Managing Director, Srishti Group, said, “The BMC’s decision to suspend water supply to construction sites reflects the seriousness of the current water shortage and the need to prioritize citizens’ drinking water needs. Given the prevailing circumstances, the industry understands the rationale behind these temporary measures and supports responsible water conservation during this period of stress.
“At the same time, the restrictions will inevitably affect the real estate sector. Construction activities such as concreting, curing, plastering and finishing depend 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.
“While many developers are increasingly adopting alternatives such as treated wastewater, recycled water, rainwater harvesting systems and tanker supplies, the availability, scalability and affordability of these options remain challenging in several parts of the city. This is particularly relevant for affordable and mid-income housing projects, where margins are already under pressure.
“The current situation underscores the urgent need to build a robust treated-water ecosystem for construction and other non-potable uses. Greater availability of treated wastewater, expanded recycling infrastructure and dedicated distribution networks can significantly reduce dependence on freshwater resources while ensuring continuity of development activities during periods of water stress.
“Given the extraordinary circumstances, the industry would welcome support from the government and civic authorities in facilitating access to treated water, streamlining approvals for alternative water sources, ensuring adequate tanker availability at reasonable rates and considering suitable relief on project timelines where projects are demonstrably impacted by the water shortage.
“It is equally important to recognise that these restrictions are a response to an exceptional and temporary situation. With the monsoon expected shortly and reservoir levels likely to improve thereafter, the measures should be reviewed and withdrawn at the earliest once water availability normalises. Emergency conservation actions are necessary during periods of acute scarcity, but they should remain temporary. Prolonged restrictions beyond the crisis period could unnecessarily affect housing delivery, infrastructure creation and employment generated by the construction sector.
“The industry remains committed to working closely with the government and civic authorities to ensure responsible water management while maintaining the momentum of urban development. A collaborative, long-term approach will be essential to build resilient cities that can sustainably balance growth, resource conservation and the housing needs of millions.”
Shilpin Tater, Managing Director, Superb Realty, said, “The suspension of water supply to construction sites comes at a time when the real estate sector is witnessing strong momentum across Mumbai and the MMR. Water is a critical input across several stages of construction, and any disruption can slow project execution, affect labour productivity and increase dependence on private water procurement.
“The additional costs associated with sourcing water through tankers and alternative channels could place significant pressure on project budgets. While the industry fully supports the need for conservation during this period, the situation reinforces the importance of sustainable water management practices such as treated water usage, on-site recycling, rainwater harvesting systems and efficient construction methodologies that reduce water consumption.
“At the same time, facilitating access to treated and recycled water for construction activities will be crucial to ensure ongoing projects continue with minimal disruption.”
Shraddha Kedia Agarwal, Director, Transcon Developers, said, “Mumbai’s real estate sector has become increasingly accustomed to navigating regulatory and infrastructure challenges, but water remains one of the most critical resources for construction.
“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.
“Going forward, this situation should serve as a catalyst for greater integration of sustainable water management systems across developments, including treated water usage, greywater recycling and enhanced rainwater harvesting infrastructure. A balanced approach that prioritises conservation while enabling essential construction activities through alternative water sources will be critical for the sector.”
Dhruman Shah, Promoter, Ariha Group, said, “The current water shortage highlights the importance of building greater resilience into urban infrastructure planning.
“For the real estate sector, the immediate concern is the impact on construction schedules, particularly for projects in critical execution stages where uninterrupted water availability is essential. Prolonged restrictions could create cascading effects across the project lifecycle, from construction progress to possession timelines and customer commitments.
“This situation also underscores the need to accelerate the adoption of sustainable practices such as on-site water recycling, rainwater harvesting and the use of treated wastewater for construction. With coordinated support from civic authorities, the sector can navigate this challenge while continuing to contribute to Mumbai’s housing and infrastructure needs.”
