Minister of state for housing Sachin Ahir on Tuesday admitted that Mhada has lost its human touch and needs to lower property prices if it wants to remain affordable for the lower middle and middle classes.
Speaking to reporters at the invitation of the Mhada Patrakar Sangh, Mr Ahir said he was personally baffled by the speed at which prices of Mhada properties had shot up to almost equal those of private builders.
“I have discussed this issue with the chief minister informally and the CM has also shown his displeasure and wants the rates to come down. In fact, our government is planning to set up a committee, which will look into how the rates can be lowered,” he said.
He informed that the committee would most likely be constituted by the secretary of the urban development department, the housing secretary and the vice-president of Mhada.
Referring to Mhada’s sale of flats in Malwani last year at rates higher than tMhadahose of private builders, Mr Ahir stressed that Mhada should adopt a professional approach with a human touch rather than a commercial one. “We will have to look forward to fair competition, which can be brought about by roping in multiple contractors. We hope the rates will also come down in the process,” he said. Mr Ahir further said that affordability be decided taking into consideration the overall saving capacity after all expenses had been incurred. However, he praised the quality of Mhada flats.
It may be noted that prices have indeed risen by 20 to 30 per cent compared to last year. The costliest house in the upcoming Mhada lottery is an apartment in Dahisar with a carpet area of 871 sq ft priced at `95 lakh. Last year, Mhada’s costliest was a flat in Tunga, Powai, with a carpet area of 476.74 sq ft, priced at `75.22 lakh at a going rate of `16,000 per sq ft.
Source: http://www.asianage.com/mumbai/committee-look-mhada-s-rising-home-rates-970
