If you want to buy a house in Mumbai but are struggling because of sky-high realty prices, there is still hope.
The Maharashtra Housing and Area Development Authority (Mhada) has announced a new scheme for 8,000 to 10,000 low-cost houses coming up in Mumbai in two years.
For the first time, Mhada, like private builders, will throw open under-construction projects in which buyers can pay for homes in four easy instalments as construction progresses.
Buyers will have to pay 10% of the total amount on booking, 40% after the cement concrete construction is ready and 25% after the project is complete. The last installment will be paid when the buyer takes possession of the flat.
“This will ease the burden on buyers and also assure them homes,” said Amarjit Singh Manhas, chairman, Mhada (Mumbai board). The lottery to select buyers will be held in June while the application forms will be available from January.
Mhada has set a deadline of March 2013 to hand over the flats to buyers.
Mhada is constructing 5,633 tenements and its repair board will hand over 3,000 flats from its kitty for sale in the open market.
The flats will be in places such as Sion, Andheri, Goregaon, Borivli and Chembur.
“It is great move because a huge stock of low-cost houses will come into the market. Mhada is the only hope because most people cannot afford the exorbitant rates private builders quote,” said noted lawyer Vinod Sampat, who handles cases related to the realty industry.
Mhada charges Rs 6,500 a square foot for high-end apartment in places such as Andheri and Goregaon, where the prevailing market rates start at Rs 10,000 a square foot.
The state housing body charges for the carpet area of a flat unlike private builders, who charge for the super-built up area that includes staircases, lobbies, elevators and playgrounds.
The new Mhada houses will be larger than the existing ones. Houses for the economically weaker section will have a minimum area of 225 square feet as against the current 180 square feet.
High-end apartments, that currently measure 500 square feet, will measure at least 800 square feet.