In view of piling inventory, Maharashtra Housing and Area Development Authority (MHADA) has decided to rationalise prices of its tenements that will be more realistic and affordable for the homebuyer.
According to the state housing department, inventory worth Rs 869 crore has remained unsold for the past several years. "There are hardly any takers for the MHADA tenements. People feel prices of MHADA houses are quite high so they prefer to invest with private developers where they can get better facilities. Therefore, we have decided to rationalise the prices," said source in MHADA.
Sanjeev Kumar, Housing secretary, said, "The new policy will be more realistic. It will be linked to the prevailing market scenario. Currently, irrespective of the market scene, MHADA keeps increasing its property rates. That is unrealistic. Therefore, we need to have a positive change that will benefit both homebuyers and MHADA."
He said that they have to recover Rs 869 crore blocked in the stagnant inventory. "MHADA is neither a profit-making agency nor any charitable trust. We have to work on no-profit no-loss," Kumar added.
An official said that MHADA tenement prices are fixed on the basis of its 2015 sale price policy. "While fixing MHADA tenement price, various factors are considered. These factors include contingency fund, unforeseen losses, establishment cost, development charges paid to BMC, actual expenditure and interest over-invested money. This is compound interest; therefore, the tenements cost of MHADA keep increasing despite a glut in the market. Why would people then buy MHADA houses," asked an official.
Kumar said that they have a long-term plan to provide a roof to every resident. "We are introducing various housing policies that will also help generate more houses. By 2022, in Maharashtra alone, we plan to construct 19 lakh houses," he said.
HOMES FOR ALL
The state housing department has a long-term plan to provide a roof to every resident. By 2022, in Maharashtra, it plans to construct 19 lakh houses
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