Only 14 per cent MHADA flats for the middle class
If you earn Rs 12,000 and above per month and plan to apply for a low-cost MHADA house, your changes of getting one are just 14 per cent, reports Naresh Kamath.mumbai Updated: Dec 06, 2009 01:22 IST
If you earn Rs 12,000 and above per month and plan to apply for a low-cost MHADA house, your changes of getting one are just 14 per cent.
The Maharashtra Housing and Area Development Authority has kept just 520 of the total 3,770 houses for the Middle Income Group (MIG) and High Income Group (HIG) this time.
This time the Authority has constructed a bulk of housing stock of 2,975 houses for those from the economically weaker section. Anyone applying for this category has to ensure that he does not earn more than Rs 8,000 monthly.
Amarjeet Singh Manhas, chairman, MHADA (Mumbai Board) said, “The decision was taken, as there was more demand from these sections. They earn less and cannot even think of approaching the private builder for houses. They are fully dependent on us.”
The cost of these houses is Rs 3.35 lakh for a 180 sq feet house. Another factor is that since the houses are small in size, more can be constructed.
However, real estate experts said the middle class is faced with bad choices. “Private developers do not construct one BHK flats anymore due to the improved market, and even MHADA is ignoring them,” said Anuj Puri, chairman and country head, Jones Lang LaSalle Meghraj, a real estate consultancy.
Puri conceded that since MHADA cannot cater to such a huge market, they should offer incentives as tax breaks or more additional area to construct if developers are ready to build small flats and cater to this section.
MHADA charges approximately Rs 15 lakh for the MIG houses which admeasure 400 to 600 sq feet while the cost of HIG houses measuring from 570 to 800 sq feet ranges from Rs 21 lakh to 60 lakh, which is almost half of that charged by private developers.
The new batch of flats announced by MHADA at places like Magathane, Sion, Malwani and Versova has 144 flats for MIG (those earning between Rs 12,001 to Rs 20,000 monthly) and 376 for HIG (those earning more than Rs 20,000 monthly).
However, Manhas tried to ally fears of the middle class saying that MHADA has plans to bring out 66,000 flats in December 2010. “We are committed to offering affordable houses to all sections,” he said.
In the last lottery, there was tremendous response as 4.34 lakh buyers applied for the 3,683 MHADA flats.