HomeDaily NewsDNA: Price of houses can be lowered furthermore: Experts.

DNA: Price of houses can be lowered furthermore: Experts.

Despite a relatively high number of responses to MHADA Mumbai board lottery, experts have said that the authority can reduce the price of the houses furthermore. Many had criticised the housing authority saying that lottery isn’t aimed at the common man following houses being sold at and around Rs 5.80 crore in south Mumbai.

Madhu Chavan, MHADA Mumbai board chairman — while agreeing that the prices may not be affordable — says they are reasonable. “There is a huge demand for MHADA homes because people cannot afford the market rate. The response is a sign that people are looking for options. I am not saying that our prices are affordable in every segment but then the influx of response shows the prices are reasonable,” he said.

Chavan said, “The home that we are selling in Cumbala Hill is priced at Rs 5.80 crore, the ongoing market rate is above Rs 8 crore and we are still selling below the market rate, which is why people are coming. We aren’t expecting MIG and LIG to come for these homes, hence it is in the HIG category.”

 

This year, 63 houses are being provided to the Economically Weaker Section (EWS) while 201 houses have been assigned for the Middle Income Group (MIG). The High Income Group (HIG) will be provided with 194 houses. Dr Sanjay Chaturvedi, housing expert, said, “MHADA homes are still expensive, and there’s a huge margin to cut down it to. MHADA shouldn’t sell homes at market rate or less than it, the homes should be sold only on construction cost, because that is what it pays. In most cases the land is provided to MHADA for free.”

The housing authority had formed a committee that had decided to look into its pricing policy, and, according to senior officials from MHADA, certain points of the recommendations made have been implemented in this lottery. MHADA credits the recommendations for “bringing down the prices this year”.

The price of houses in Lower Parel in the last lottery was around Rs 1.92 crore as against Rs 1.36 crore this year. While the homes priced at Rs 1.36 crore cost Rs 99 lakh this year.

HOUSING SEGMENTS

  • 63 houses are being provided to the Economically Weaker Section. 201 houses have been assigned for the Middle Income Group. The High Income Group will be provided with 194 houses.