Housing sector remained under pressure during 2020-21: Maharashtra economic survey

The Economic Survey tabled in the state legislature has revealed that the housing sector remained under pressure in 2020-21 due to the Covid-19 pandemic and the subsequent lockdown

The Economic Survey tabled in the state legislature has revealed that the housing sector remained under pressure in 2020-21 due to the Covid-19 pandemic and the subsequent lockdown.

(HT PHOTO)

The Maharashtra Housing and Area Development Authority (Mhada) constructed just 1,163 tenements compared to 2,074 in the previous year. The commercial tenements came down to 53 this time compared to 519 last year. Due to this, the amount spent also came down substantially to ₹389.32 crore compared to ₹651.43 crore last year.

Another casualty was the Slum Rehabilitation Authority (SRA) scheme, as just 27.20 % of its target was met in 2020-21. Around 1,687 new tenements were completed compared to a target of 6,201 houses. Last year, SRA had reached its target of 46.92%, as it completed 3,827 tenements of its target 8,155 houses.

According to Niranjan Hiranandani, founder of the Hiranandani group which has built townships in Thane and Powai said that slowdown had impacted the sector. “The SRA and Mhada policies need to be reworked. We are seeing the proactive approach from the government in terms of reduction of stamp duty and the coming year will be positive for the sector,” said Hiranandani.

The state government has planned to construct 19.40 lakh houses in 391 cities under the Pradhan Mantri Awaas Yojana – Housing For All (PMAY-HFA). Under this scheme, up to December 2020, a total of 1,008 projects consisting of 14.43 lakh dwelling units have been approved, of which, construction of 6.68 lakh dwelling units is in progress. This means just 34.43% of the total works has been in progress.

The PMAY scheme in the rural areas has been an underperformer with just 0.20% of the target being met. Around 790 houses have been constructed in 2020-21 out of the total target 3,91,069 at the cost of ₹331.14 crore.

The Maharashtra Real Estate Regulatory Authority (MahaRera) which was established in May 2017, has 27,893 projects registered with it till December 2020. It now has a disposal rate of 68.32% of its complaints with 8,464 complaints being resolved of the total 12,388.

Prakkash Nichanii, proprietor, Anchor Property Consultants, said the time has come for the government to take various steps to revive the sector. “The ready reckoner rates should be reduced and provide funding to the stalled projects,” said Nichanii.