The Maharashtra Housing and Area Development Authority (MHADA) announced its lottery date i.e. November 10, when dreams of many Mumbaikars will come true as they will be able to buy their own home in the city. However, it seems that MHADA is good in cracking jokes or else they would not have been selling a house worth INR 2 cr in Lower Parel’s City View building. The per sq foot in the area (as per MHADA) is worth INR 43,000 and apparently, this is an expensive deal in comparison to private builders.
Amongst 819 houses - which MHADA is going to sell through a lottery system - 36 houses are in Lower Parel’s City View building. MHADA got these houses through redevelopment and hence they did not pay the land or construction cost, yet they are selling these flats at a higher rate. Out of 36 houses, two houses, one of 472 sq feet and another house of 330 sq feet costs INR 1.95Cr and INR 1.42Cr respectively
Pvt builders offering house worth INR 1.20Cr in City View
In City View building, the 472 sq feet house costs INR 1.95Cr, another flat in the same building costs only INR 1.20Cr which is 540 sq feet. As per ads on many retail housing websites, private builders are charging INR 35,000 per sq feet for other properties in the same building, whereas MHADA is charging INR 43,000 per sq feet.
Talking about the disparity in price with Mumbai Live, Subhash Lakhe, Chief Officer at MHADA, said that it is offering flats at 30% cheaper rate compared to private builders. He further clarified that in a plan to keep affordable houses available for economically weaker sections, low income, and medium income group, they have increased the rates of houses falling under high-income group.