The Mumbai Board of MHADA is grappling with a slow response to its premium housing stock, with several flats priced above one crore still lying unsold. Accoordig to Loksatta, in a bid to address the issue, the board introduced a first come, first served scheme, hoping to speed up sales. However, the response to these high value homes has remained lukewarm.
Even after two weeks of launching the scheme, 54 out of 118 flats remain unsold. So far, only 64 units have found buyers, raising concerns within the board.
Gap Between Pricing and Affordability
MHADA lotteries have traditionally seen strong participation, but in recent years, rising property prices have changed the landscape. The cost of many homes has climbed beyond what eligible income groups can comfortably afford.
Officials point to a widening gap between income limits and property prices as a key reason behind the poor response. As a result, even interested applicants are unable to proceed with purchases, leaving several units unsold.
Past Trends Reflect Ongoing Issue
The problem is not new. In 2023, seven flats in a Tardeo tower were priced as high as seven and a half crore. Despite subsequent price adjustments, these units failed to attract buyers.
Currently, similar trends are being seen across locations such as Juhu, Powai, Byculla, and Tardeo, where homes priced between one and eight crore are struggling to find takers. This has also impacted the board’s revenue flow.
Affordable Units See Quick Demand
In contrast, relatively affordable homes have seen strong interest. Flats priced around Rs 42 lakh in Wadala were snapped up within minutes on the first day of the scheme. This sharp contrast highlights the price sensitivity of buyers in the city.
While some applications have been received for higher value properties, conversions remain uncertain until full payments are made.
Board Faces Growing Pressure
With dozens of flats still unsold, the Mumbai Board is under pressure to rethink its pricing and strategy. The hope that relaxed eligibility norms would boost sales has not fully materialised.
The situation underlines a larger concern in Mumbai’s housing sector, where even government backed housing schemes are struggling to bridge the gap between supply and affordability.
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