Affordable homes in Mumbai may be a distant dream due to rising construction costs

Q: Indeed as Maharashtra government has been concerned on giving affordable housing, there seems to be no significant efforts towards attaining this.

Anuskha Chandan, Mumbai

1st April 2015

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Replies (4)

Hi all,
Now the affordable homes in Mumbai may not be a distant dream. As Maharashtra Government has been concerned on giving affordable housing. As per the the Maharashtra government, they will change rules and regulations to help in delivery of affordable housing projects for the millions of the state's poor. Making sure that the offered new housing policy would be "pro-people", CM Fadnavis told the developers to work together with the government in its mission to provide affordable housing for the lower-middle class and the poor people.

Shantanu Kumar, Mumbai

23rd April 2015

Comment

Hi Shantanu,
Great to hear from our CM, speaking at a conference on "Vision Maharashtra - Housing For All by 2022" organized by National Real Estate Development Council.

As per the Maharashtra CM, they have taken this issue very seriously and are fully commited to apply it. Govt. will make the laws versatile and he am ready to face criticism.

Dharmaja Patel, Mumbai

24th April 2015

HI Dharmaja,
He also said that challenging laws and taxation must go to help the developers, but finally that should also result in affordable housing stocks which has became a distant dream for the people of Mumbai.

But as per him, the new offered Development Control Rules for Mumbai would make sure that the optional powers of officials are decrease to the minimum for increased visibility.

Shantanu Kumar, Mumbai

24th April 2015

Even the Housing Minister Prakash Mehta recommended a decrease in FSI-TDR rates to make land available to developers in return for a specific percentage of free homes to the government, which could be sold at low prices to the poor classes.

Through this, the govt could eliminate its Rs.350000 crore financial debt pressure got from the past program.

Dharmaja Patel, Mumbai

24th April 2015

I think that our government is entirely focusing on how to generate revenue without any thought for the current situation.

The real estate sector has been going through a slowdown, with the sales falling due to the increasing prices. Buyers have delayed purchase plans and are waiting for prices as well as interest rates on home loans to decrease

Harilal, Delhi-NCR

2nd April 2015

Comment

@Bhuvan,
Steel is a very important element constituting 15%-20 % of the total construction material. It is currently available at Rs 40/kilogram and builders use at least 4-8 kilograms every square feet. The state's idea to impose an entry charge of 5 % will push up costs.

Sharath bharadwaj, Ghaziabad

1st April 2015

Comment

Absolutely right sir,
Even The National Real Estate Development Council (NAREDCO) has claimed that both the Union and state budget are a disappointment for the real estate sector, which is currently facing a slowdown.

Bhuvan, Delhi-NCR

1st April 2015

Right Anuskha,
As we have seen in the budget 2015, in which the state has proposed a 5% entry tax on long steel, which is expected to increase the construction cost significantly. Long steel, a important raw material in the construction business, will force the construction cost by approximately Rs 150-300/sq-ft.

Sharath bharadwaj, Ghaziabad

1st April 2015

Comment

@Sharath,
This move will definitely increase the cost of construction and make houses unaffordable. In spite of promises of affordable housing, there are no steps being undertaken by both the Union and state budget.

Bhuvan, Delhi-NCR

1st April 2015