Mhada flat rates may go up by 90% -dna 31-03-08

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Mhada flat rates may go up by 90%

Even officials feel the hiked rates will discourage flat buyers
Sandeep Ashar
The state housing board, Mhada, plans to double the rates of sale flats in its various projects. Originally set up to create low-cost and affordable housing in the city, Mhada now proposes to increase the going rates of its flats by almost 90 per cent.
The new rates are based on the ready reckoner rates. The previous pricing of flats was on the basis on a 1992 state guideline that took into account the land acquisition cost and the construction cost for the structure while fixing the rates.
Information available with DNA reveals that a 485 sq ft LIG flat at Kan-namwar Nagar in Vikhroli, which was earlier available at Rsl,350 per sq ft will now be sold at Rs2,580 per sq ft. The percentage price hike in this case is 91 per cent. This means a flat that could be bought at Rs6.54 lakh last year will now be priced at Rsl2.51 lakh.
Similarly, a 652 sq ft flat at Pratik-sha Nagar in Sion, earlier available at Rs ll.73 lakh (1,800 per sq ft) will Vikhroli. However, even officials in the housing board are against a sharp rise in the rates. "The sharp hike defeats the purpose of affordable housing for each income group for which the board was set up," said a senior Mhada official.
In fact, after a circular to this effect was issued by the board's vice-president T Chandrasekhar, officials from the Mumbai Board have expressed reservations over the rates. Senior sources said Chandrasekhar has ordered a meeting of senior Mhada officials to hear their apprehensions.
a_sandeep@dnaindia.net
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 Oshi-wara, Bimbisar Nagar in Goregaon, Dindoshi, and Tagorenagar.

Source: DNA 31-3-2008




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