Prospective home-buyers have reason for some cheer. The Maharashtra Housing and Area Development Authority (Mhada) plans to build 3,059 low-cost houses in Mumbai in the coming months.
In addition, the mass housing body will put up 1,745 low-cost houses for sale later this year.
To build its low-cost homes, Mhada has set aside Rs751 crore.
The amount is nearly nine per cent of Mhada’s annual budget of Rs6,459 crore, which was presented on Tuesday.
Sachin Ahir, state minister for housing, said the outlay was planned with the goal of creating affordable homes.
“We are making all efforts to provide affordable houses and this amount increases every year,” Ahir said.
He said that the quality of construction in Mhada buildings has improved considerably and hence the rise in budgetary allocation.
Mhada houses are popular as they are priced at less than half of those sold by private builders. Lakhs of prospective flat-purchasers try their luck for the few hundred homes that the Mhada sells through its lottery. This year, Mhada plans to sell 1,745 apartments located in areas like Sion, Ghatkopar, Dahisar and Malad. The sale is likely to fetch Mhada Rs960.41 crore.
This year’s Mhada budget also has a provision for subsidy from the state government, where the latter will pay a part of the land cost. Faced with depleting land reserves, Mhada is scouting for plots to develop and has invited private parties to either co-develop or sell land. “The state will subsidise the land cost so that buying can be easier,” Ahir said. Apart from Mumbai, Mhada also plans to construct affordable houses across Maharashtra.