Even as the ‘low-cost’ houses of the state housing authority are increasingly getting more expensive and applications for the authority’s lottery have dipped over the years, this year the number of applications has crossed 1.20 lakh, with nearly 90 percent of them being for houses in Mumbai.
Monday was the last date for applying for the Maharashtra Housing and Area Development Authority’s lottery of low-cost houses scheduled to be held on June 25. The authority has recorded a total of 1,23,254 applications for the 2,641 houses it plans to sell. The housing authority has advertised to sell 814 houses across the city through its Mumbai board and 1,827 houses in Virar and Vengurla, Sindhudurg, through its Konkan board.
Till Monday evening, 81,931 out of the 1.23 lakh applicants had confirmed their presence in the lottery by paying the earnest money deposit.
DK Jagdale, joint chief officer at MHADA’s Mumbai board, said, “Applicants have time till June 11 to pay the deposit so we expect the number to increase. Post that, we will scrutinize the list of applications and publish a final list on June 19. The response for this year’s lottery improved after we decided to lower the cost of houses advertised for sale.”
Late last month, MHADA slashed the prices of its houses by 2 to 10 percent by reducing the interest on the capitalization of investment, or the interest it charges on the capital set aside for the project and given to the contractor, from 14 percent to 10.28 percent.
Of the applicants who have paid the deposit, 74,136 have applied for the 814 houses to be sold in Mumbai bringing the ratio to 91 people vying for every house to be sold in the city. Last year, when MHADA had advertised to sell 1,274 houses, this ratio was 69 people to one house, while in 2012, there were 121 people in the race for each house in Mumbai.
While there has been a lot of interest this year in the Mumbai houses, the response for the houses it has advertised to sell through its Konkan board has been lacklustre as the authority’s prices are close to the going market rates in those areas.