MHADA Mumbai Lottery Prices Hit Roof; Costliest Property at ₹7.58 Cr in Tardeo

Mumbai: The Maharashtra Housing and Area Development Authority, a body set up to provide affordable homes to the public, is not so affordable anymore. The price of units in Mumbai, announced on Monday, is as high as those offered by private developers, at more than ₹7.5 crore.

“The prices are insanely high and not at all in the affordable range that I was anticipating and for which MHADA is known. After checking the rates, I am not sure how I will be able to pay for it even if I do win the lottery,” said M H Kamal, a Dombivli resident, who wants to relocate to a suburb closer to his workplace in Mumbai. 

Another reason for homebuyers getting upset over the high-priced ‘affordable’ homes is the substandard construction quality, as compared to what is offered by other developers in the market.

On Monday, MHADA’s Mumbai Board announced the sale of 4,083 homes at various locations within Greater Mumbai limits.

For example, at D N Nagar, Andheri west, a 553 sq ft-flat for the Low-Income Group (LIG) has been priced at over Rs 1.61 crore. Applicants with annual incomes in the range of Rs 6 to 9 lakh qualify for this. An applicant with a gross monthly income of ₹85,000 would be eligible for a home loan of Rs 44 lakh, at an interest rate of 8.6 per cent per annum.

This means, the individual will need to have a minimum of Rs 1.17 crore for down payment, apart from having to shell out money for stamp duty, registration, advance maintenance, and other costs – an additional amount of Rs 12 lakh.

Details on the house pricings

For the Economically Weaker Section (EWS) – with a taxable family income of up to Rs 6 lakh per annum – a flat at Antop Hill in Wadala is being sold for Rs 40 lakh. If the applicant has a net annual income of Rs 6 lakh, the person will only be eligible for a housing loan of Rs 28.50 lakh, only if the person does not have any other loans to repay, such as two-wheeler loan, insurance premiums, credit card EMIs, etc.

For Middle-Income Group (MIG) applicants, there is a 911 sq ft-apartment in the JVPD Scheme, priced at Rs 4.72 crore.

Coming to the most expensive offering, in the High-Income Group (HIG) bracket is a 1,532 sq ft-apartment at Crescent Towers in Tardeo, priced at almost ₹7.58 crore. 

 When the subject of the pricey homes was broached with Chief Officer of the Mumbai Board Milind Borikar, he remained silent and would also not comment on whether there would be any reconsideration of the prices to elicit a better response from the public.

 Applications flock in for MHADA homes

As of 6pm on Tuesday, the Mumbai Board received 4,236 applications, but earnest money deposit was made only for 1,700 applications. Only on payment of the deposit amounts can an application qualify for the lottery draw.