Mhada to use new method to sell flats

After failing to get a satisfactory response while selling its flats via the lottery system in Nashik, the Maharashtra Housing and Area Development Authority (Mhada) has now decided to sell around 200 homes on a first-come-first-serve basis by slashing around Rs 2-5 lakh per unit.

The target audience for the same is potential buyers from Mumbai who have more purchasing power, and specifically those buyers who are looking for a second home as the flats are located in the exteriors of Nashik near the entry point of the Mumbai-Agra Highway, claims Mhada.

Every year, Mhada conducts a lottery to sell affordable homes in the Mumbai, Konkan, Nashik, Pune, Aurangabad and Nagpur regions. Like every year, it had announced flats under the Economical Weaker Section (EWS), Lower Income Group (LIG) and Middle Income Group (MIG) categories in the Nashik lottery. However, around 192 units (2-BHK) and 17 units (1-BHK) under the MIG category did not get any response.

“We tried every means possible, like extending dates and promoting the flats available for sale, but did not get any response. After all options were exhausted, we decided to sell these units on a first-come-first-serve basis by slashing the prices,” said a Mhada official.

Another factor Mhada claims as a reason for the less-than-satisfactory response for the flats is that Nashik does not have a flat-owning culture.

“In Mumbai we have people buying flats and residing in them, but the same culture is not there in Nashik. In Nashik, people still prefer buying plots and constructing their own cottages,” added the Mhada official.

Earlier, Mhada used to construct bungalow-type cottages, but it stopped that, since constructing flats allows for having more houses in one particular plot for the masses. The 192 2-BHK units measure around 760 sq ft (carpet area) and the 171-BHK units are around 525 sq ft. The cost for one 2-BHK and 1-BHK is Rs 28.83 lakh and Rs 19.15 lakh respectively.

Though the empty units in Nashik are under the MIG category, there is no such criterion for buying these units. Anyone financially capable of buying these units can apply for the same.

Meanwhile, Mhada’s Mumbai board lottery has got around 1.25 lakh applications for 972 homes under the EWS, LIG, MIG and Higher Income Group (HIG) categories. The results for the same will be announced on August 10.