MHADA Housing Prices May Drop by 7% to 10%; Mumbai Board Plans Discount on Unsold Flats

MHADA Housing Scheme Update: Homebuyers in Mumbai may soon get an opportunity to purchase affordable homes at lower prices. The Maharashtra Housing and Area Development Authority (MHADA) is considering a price reduction of around 7% to 10% for flats that have remained unsold despite being offered in previous housing lotteries.

A final decision is expected at an upcoming MHADA Authority meeting. If approved, the revised prices will help attract more buyers and allow the authority to sell hundreds of vacant homes under its First-Come, First-Served scheme.

MHADA Plans to Reduce Prices of 300 to 400 Unsold Mumbai Flats

MHADA's Mumbai Board regularly announces housing lotteries that include apartments constructed by the authority and homes received from private developers under various housing schemes.

However, some apartments have received limited interest from buyers because of their relatively high prices, with several properties costing crores of rupees.

According to officials, around 300 to 400 flats remain unsold even after being included in housing lotteries more than once. As a result, a considerable amount of MHADA's funds remains tied up in these vacant properties.

To address this issue, MHADA is considering reducing their prices and offering them through the First-Come, First-Served scheme. An advertisement for these homes is expected to be released after Diwali.

How Much Could MHADA House Prices Decrease?

The proposed price reduction could range from 7% to 10%, according to sources familiar with the development.

A similar step was taken earlier when MHADA reduced the prices of apartments in Kannamwar Nagar by approximately 7.5% following concerns over their high costs.

Based on that experience, the authority is now considering a comparable reduction for flats that have failed to attract buyers in multiple lotteries.

If approved, the revised prices could make these apartments more attractive to prospective homebuyers looking for housing opportunities in Mumbai.

MHADA May Reduce Profit Margins and Administrative Costs

One of the key reasons behind the proposed price revision is to make better use of the authority's funds.

While calculating housing prices, MHADA generally includes a nominal profit margin along with administrative expenses. However, when apartments remain unsold for a long time, the authority's money continues to remain blocked.

To make these properties easier to sell, MHADA is considering reducing its profit margin and administrative costs. This approach could help lower the final selling prices without changing the basic objective of making housing available to eligible buyers.

Unsold MHADA Flats May Be Available Through the FCFS Scheme

Under the proposed plan, apartments that have remained unsold after appearing in housing lotteries more than twice will be offered through the FCFS system.

Unlike the traditional lottery process, the First-Come, First-Served scheme allows eligible applicants to select available homes based on the order in which they complete the required booking process.

The proposed price reduction is expected to improve buyer interest and help MHADA clear its unsold housing inventory.

The initiative is part of the authority's broader efforts to improve housing sales and make available properties more accessible to homebuyers. Under the leadership of IAS Sanjeev Jaiswal, Vice President and Chief Executive Officer of MHADA, the authority is working on measures to improve housing delivery and make better use of its available housing stock.

What Did MHADA Say About the Proposed Price Reduction?

Milind Borikar, Chief Officer of the Mumbai Board, confirmed that the authority is considering reducing the prices of apartments that have remained unsold despite being included in previous housing lotteries.

He stated that an appropriate decision regarding the price reduction will be taken at the upcoming MHADA Authority meeting.

If the proposal receives approval, homebuyers could soon get another opportunity to purchase MHADA apartments in Mumbai at comparatively lower prices through the FCFS scheme.

Note: The proposed 7% to 10% price reduction is under consideration and is not yet officially approved. The final discount, eligible properties, revised prices, and sale schedule will depend on the authority's decision.