Mumbai: MHADA's Virar lottery winners hit another jackpot

Updated: Jan 29, 2015, 10:31 IST | Varun Singh |

Following expected change in pricing policy next week, housing authority will be charging July lottery winners and future buyers nearly Rs 3 lakh less for its Virar flats than it had quoted initially

With real estate prices making their way to the stratosphere, there is good news for at least a few house buyers. In a move unheard of in the city’s realty market, MHADA is going to charge previous lottery winners and future buyers of its homes in Virar nearly Rs 3 lakh less than the prices it had quoted for the flats initially.

The under-construction MHADA flats in Virar. File pic
The under-construction MHADA flats in Virar. File pic

In the lottery, held in July, MHADA had sold nearly 1,500 flats in Virar at Rs 25 lakh in the Economically Weaker Section (EWS) category and R45 lakh for the Middle Income Group (MIG) category. As per its new pricing policy, the housing authority will be slashing the rates to Rs 23 lakh and Rs 42 lakh respectively.

Confirming this, MHADA’s Chief PRO Vaishali Sandansingh said, “There will be a change in the pricing policy of MHADA, wherein the interest rate on construction cost will be reduced from 14.5% to 10.5%.

Because of this, the rates for the homes will reduce. The decision will be out in a week.” When MHADA had come out with the lottery for the Virar homes in July, the buildings were half constructed, and all the permissions are in place now.

“In larger complexes, the construction cost of the buildings is lower and with all the permissions in place, when we calculated the rate, we realised that the construction cost interest is lesser than the one that had been applied earlier. Hence, MHADA has reduced the prices of the homes, and even the new flats will be sold at the cheaper rates,” said a senior MHADA officer.

By next week, MHADA’s Konkan board will pass the amendment in the pricing policy, which will be implemented with immediate effect. Letters with new prices will be sent to the winners of the last lottery, and the new prices will be charged from them instead of the old ones.

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