Hit by low demand, MHADA slashes prices of 370 lottery flats in South Mumbai by up to 25%
These houses are part of Mumbai lottery draw which was called earlier this month for 2030 houses. State Housing Minister Atul Save announced the reduction in cost of houses during an event in MHADA headquarters held for unveiling a mascot.
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These price cuts apply specifically to surplus houses from redevelopment projects under Development Control Regulations (DCR) 33(7) and (5).
The Mumbai board of Maharashtra Housing and Area Development Authority (MHADA) Wednesday announced a reduction in prices of 370 lottery houses by 10-25 per cent.
These houses are part of Mumbai lottery draw which was called earlier this month for 2030 houses. State Housing Minister Atul Save announced the reduction in cost of houses during an event in MHADA headquarters held for unveiling a mascot.
The decision was made in response to dissatisfaction among homebuyers, many of whom are salaried individuals, who found MHADA’s prices unaffordable.
According to the latest announcement, the price reductions are as follows: prices of houses in the Economically Weaker Section (EWS) category have been reduced by 25 per cent, the Lower Income Group (LIG) by 20 per cent, the Middle Income Group (MIG) by 15 per cent, and the Higher Income Group (HIG) by 10 per cent.
These price cuts apply specifically to surplus houses from redevelopment projects under Development Control Regulations (DCR) 33(7) and (5).
This is the first time these surplus homes, located in prime areas of South Mumbai such as Tardeo, Worli, and Mumbai Central, are being offered in the Mumbai lottery.
A flat in the Higher Income Group category at Crescent Tower in Tardeo, previously priced at Rs 7.57 crore, will now approximately cost Rs 6.81 crore after a 10 per cent reduction.
Similarly, a flat in the EWS category, initially priced at Rs 42.69 lakh, is now priced at Rs 32 lakh after a 25 per cent reduction.
MHADA calculated the cost of these South Mumbai surplus houses based on the ready reckoner rate of the area, allowing them to charge up to 110 per cent. This led to prices being significantly high.
An official mentioned that a policy decision is needed to revise the pricing strategy to make these homes more affordable. The pricing model used for these homes does not apply to properties in Mumbai’s suburbs.
Meanwhile, the deadline for applications for the Mumbai Board lottery, which began on August 9, has been extended from September 4 to September 19.
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