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Realty check: Low-cost houses big hit

1.25 lakh people apply for 972 MHADA houses in western, central suburbs amid real estate slump

mumbai Updated: Jul 29, 2016 01:09 IST
HT Correspondent
There are 128 applicants for every MHADA home.
There are 128 applicants for every MHADA home. (HT Photo)

Despite the slowdown in the real estate sector where home sales are dipping by the day, the Maharashtra Housing and Area Development Authority (MHADA) Housing lottery received a tremendous response with 1.25 lakh buyers applying for the 972 houses put on the block.

This effectively means, there are 128 applicants for every MHADA home.

According to MHADA public relation officer (PRO) Hemant Patil, the response has been overwhelming. “Despite the depressed market, we have managed to provide low cost houses to the buyers,” said Patil. “They reposed trust in MHADA and hence applied in large numbers.”

The 972 houses being sold by MHADA range between Rs8.17 lakh for 261 square feet houses at Malvani and Rs83.86 lakh for a 1,291 square feet apartment at Shailendra Nagar at Dahisar. Other areas where houses have been put on sale include Borivli, Chandivli, Goregaon, Chembur, Kurla and Mankhurd.

The lottery is also set to be held on August 10 at Rangsharda Hall in Bandra.

MHADA houses are a great attraction for people and this can be gauged from the fact that in the last nine draws; more than 13.58 lakh applicants tried their luck for the 22,923 houses put up for sale.

In the last few years, the real estate sector has been going through a rough phase with sales dropping drastically as the builders jacked up prices to exorbitant levels.

Homebuyers postponed their plans saying they could not afford houses and this resulted in a huge pile of inventory for the builders which ran into approximately 2.20lakh unsold houses in Mumbai Metropolitan Region.

Builders however point that they cannot match their prices with MHADA. “MHADA has got the land free of cost and it also gets a higher floor space index unlike private builders. Also , MHADA has huge funds at their disposal unlike us, who need to depend on private lenders and banks that charge exorbitent interest rates. This allows them to charge lower rates then us,” said Rajesh Vardhan, managing director of Vardhman Group.