Sharp Rise Is Possible In Mhada Flat Cost

The state housing board, Mhada decides to raise the rate of sale flats in its various projects by double. The main goal of Mhada was to provide housing at reasonable cost and now Madha puts forward the issue for increase the going rates of its flats by almost 90%. Earlier, flat price was fixed on the basis of 1992 state guide that considered the land acquisition cost and the construction cost for the structure for fixing the rate.

Data available with DNA exposes that a 485 sq ft LIG flat at Kannamwar Nagar in Vikhroli, which was earlier available at Rs. l, 350 per sq ft will now be sold at Rs2, 580 per sq ft. The percentage price hike in this case is 91%. This means a flat that could be bought at Rs. 6.54 lakh last year will now be priced at Rs. l2.51 lakh.

Similarly, a 652 sq ft flat at Pratiksha Nagar in Sion, earlier available at Rs ll.73 lakh (1,800 per sq ft) will now be sold at Rs21.51 lakh (Rs3, 300 per sq ft). The rates will first be implemented for 1884 flats to be put up for sale in January. Apart from Prateeksha Nagar and Kannamwar Nagar, other flats are located at Navghar in Mulund, Malvani in Malad, Patliputra Nagar in Oshiwara, Bimbisar Nagar in Gurgaon, Dindoshi and Tagorenagar in Vikhroli.

However, the opinion of Mhada officials is not in the favour of rise in the flat rates. They too think that this act will create an obstacle in the way to provide affordable housing for every income group.

Last available information is that the board’s vice-president Mr. T Chandrasekhar has ordered a meeting of senior Mhada officials to get their opinion.