The Maharashtra Housing and Area Development Authority (MHADA) has extended the deadline for the housing lottery under its Konkan regional board to December 24 as it struggles to attract buyers for large parts of its inventory located in areas such as Virar, Thane, Kalyan and elsewhere. This is after the Konkan Housing and Area Development Board (KHADB), MHADA's regional unit that implements affordable housing projects in districts under the Konkan division, conducted a special 10-day drive to attract more buyers for the flats on sale.
According to real estate experts, the muted reception is largely due to buyers' concerns about the location of some of these projects, largely in relatively new civic areas where amenities such as water, drainage and roads are still underdeveloped, despite some progress in recent years.
Another concern among buyers is the lack of viable transit options to commute to employment centres. Some of these locations are far from the suburban railway network, or from upcoming metro stations. Moreover, many of these areas are yet to have quality social infrastructure, such as supermarkets, schools and hospitals.
As part of the lottery process, KHADB is offering more than 11,000 homes on a first come, first served basis, while 2,264 homes will be sold through MHADA’s lottery process. The latter component includes KHADB's own inventory, as well as homes made available under the Pradhan Mantri Awas Yojana. Most of the flats on offer are priced between Rs 14 lakh and Rs 21 lakh.
According to latest figures shared by MHADA, homes in the Konkan board lottery that are to be sold under MHADA's regular lottery process have received significant interest, with more than 19,000 applications, of which more than 10,000 have paid the earnest money deposit. However, interest has been lacking in the first come, first served component. Of the 11,176 units available for sale here, KHADB has received only around 6,500 applications, with even fewer paying the earnest money deposit that would make the applicant eligible to be allotted a home.
Earlier this month, MHADA conceded that its large unsold inventory across Maharashtra—worth around Rs 3,000 crore—is a cause for concern, and the authority has been instructed by its leadership to take steps to liquidate the inventory.
MHADA officials added that most of these locations now have round-the-clock water and reliable electricity connections, developed roads and a number of upcoming metro stations are slated to come up soon. They added that the authority is "constantly in talks" with local civic bodies to further augment amenities according to increasing needs, and are also coordinating with hospital and supermarket players to address buyers' concerns about a lack of social infrastructure.
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