Mumbai's affordable housing scheme gets few takers
15 Apr 2013
2 Min Read
CW Staff
Response for the Maharashtra government's rental housing scheme, aimed at stemming slum proliferation and preventing unauthorised structures from sprouting in Mumbai city's metropolitan region, has so far been dismal in the Mumbra-Shilphata belt, an area that probably needed the scheme the most.
There have been just two proposals from developers in this region for creating affordable houses under the rental housing scheme. Of the two, only one could be approved as per norms. The scheme was market-based.
Wherever there was enough market demand, real estate developers submitted proposals to construct houses under this scheme. The response in the Mumbra-Shilphata region in particular might be low because, developers tend to agglomerate in clusters and probably there is paucity of continuous stretches of vacant land there, said Uma Adusumilli, Chief of the rental housing project, being implemented by MMRDA.
Earlier this month, the collapse of an illegal building in Mumbra had brought to light the rampant growth of unauthorised structures in the Mumbra-Shil Phata belt.
The sole scheme approved in this region is by the Dosti Group at Mumbra junction. It is likely to yield about 1,800 units for affordable housing. The only other proposal could not qualify as the developer did not have a continuous plot.
Rajesh Prajapati, president of MCHI-CREDAI's Raigad unit, said the price builders get in this area is lower than the cost of construction that they incur in a rental housing project. To use the FSI of 4 under this scheme, the building has to be at least 30-storeyed and the cost of construction comes to at least Rs 3,000 per sq ft.
Looking at the cost overruns and other issues, the cost that the developer will want to sell at will be Rs 5,500-6,000 per sq ft. The market is not able to sustain such a high price, Prajapati said. He added that the soil in that region is mostly clay and a building foundation has to go very deep, raising the cost of construction.
The rental housing scheme was floated in October 2008 with the intention of creating five lakh affordable houses within five years. However, so far MMRDA has approved only 54 schemes across MMR.
Response for the Maharashtra government's rental housing scheme, aimed at stemming slum proliferation and preventing unauthorised structures from sprouting in Mumbai city's metropolitan region, has so far been dismal in the Mumbra-Shilphata belt, an area that probably needed the scheme the most.
There have been just two proposals from developers in this region for creating affordable houses under the rental housing scheme. Of the two, only one could be approved as per norms. The scheme was market-based.
Wherever there was enough market demand, real estate developers submitted proposals to construct houses under this scheme. The response in the Mumbra-Shilphata region in particular might be low because, developers tend to agglomerate in clusters and probably there is paucity of continuous stretches of vacant land there, said Uma Adusumilli, Chief of the rental housing project, being implemented by MMRDA.
Earlier this month, the collapse of an illegal building in Mumbra had brought to light the rampant growth of unauthorised structures in the Mumbra-Shil Phata belt.
The sole scheme approved in this region is by the Dosti Group at Mumbra junction. It is likely to yield about 1,800 units for affordable housing. The only other proposal could not qualify as the developer did not have a continuous plot.
Rajesh Prajapati, president of MCHI-CREDAI's Raigad unit, said the price builders get in this area is lower than the cost of construction that they incur in a rental housing project. To use the FSI of 4 under this scheme, the building has to be at least 30-storeyed and the cost of construction comes to at least Rs 3,000 per sq ft.
Looking at the cost overruns and other issues, the cost that the developer will want to sell at will be Rs 5,500-6,000 per sq ft. The market is not able to sustain such a high price, Prajapati said. He added that the soil in that region is mostly clay and a building foundation has to go very deep, raising the cost of construction.
The rental housing scheme was floated in October 2008 with the intention of creating five lakh affordable houses within five years. However, so far MMRDA has approved only 54 schemes across MMR.
Next Story
3i Infotech Reports Rs 7.25 Bn Revenue for FY25
3i Infotech, a leading provider of digital transformation, technology services and technology solutions, announced its consolidated financial results for the fourth quarter and full year FY25, ended on March 31st, 2025. The company maintained its growth momentum, displaying consistent progress for the 3rd consecutive quarter.In Q4 FY25, 3i Infotech reported revenue of Rs 1.87 billion, reflecting steady performance compared to Rs 1.81 billion in Q3 FY25 and Rs 1.97 billion in Q4 FY24. The company delivered strong profitability improvements, with gross margin growing by 14.8 per cent Q-o-Q and 1..
Next Story
Emerald Finance Joins Baya PTE to Boost SME Bill Discounting
Emerald Finance is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, has entered into a strategic partnership with Singapore-based Baya PTE through its Indian subsidiary. This collaboration aims to strengthen bill discounting services for Small and Medium Enterprises (SMEs), enabling faster access to working capital and improved cash flow management.The initiative is designed to support SMEs that supply to large corporates such as JSW Steel, Delhivery, and PVR INOX, among others. By facilitating timely invoice dis..
Next Story
BLS E-Services Crosses Rs 5 Bn Revenue Mark in FY25
BLS E-Services, a technology-enabled digital service provider, announced its audited consolidated financial results for the quarter and full year period ended 31 March 2025.Speaking about the performance and recent updates, Shikhar Aggarwal, Chairman, BLS E- Services said, 鈥淲e are delighted to report a remarkable performance in FY25, as we achieved several milestones during the fiscal year. FY25 marked our highest-ever financial performance, as we surpassed Rs 5 billion milestone in Total Income during the year, which was reported at Rs 5.45 billion, a notable YoY growth of 76 per cent. The ..
