In a bid to push for the redevelopment of old cess buildings, including old dilapidated Maharashtra Housing and Area Development Authority (MHADA) colonies, the state Housing Minister Jitendra Ahwad has announced to bring in foreign direct investment. In a recent press release issued by MHADA, the information was disclosed.
There are about 17,000 cess structures, which are located mainly in South Mumbai. In the suburbs, 104 colonies belong to MHADA. Interestingly, despite the properties being located in prime locations of Mumbai and its suburbs, several redevelopment projects are stuck due to the lack of funds as one of the main reasons.
Therefore, to resolve this issue, the government will need to bring in foreign direct investment. The move will not only resolve the fund-related problems acting as hindrance for carrying out the redevelopment of these old properties, but will also help to generate housing stock for lottery.
MHADA, every year, conducts lottery, offering affordable houses. However, with no sufficient stock of houses, it is unable to meet the rising demand of home buyers. According to the 2019 data, MHADA could only offer 217 houses in a lottery, for which over 66,078 home buyers had applied. In fact, due to no stock of houses, MHADA is now finding it tough to conduct lottery for houses in Mumbai this year.
