By Accommodation Times News Services
Despite Maharashtra Housing and Area Develop Authority (Mhada) dropping down their flat prices for this year’s lottery by 10%, still demand for Mhada flats has substantially come down. This year around only 1.2 lakh individuals have applied for the 2, 641 lottery flats. The reason for the drop in number of applicants is assumed to be the high prices of flats.
Since, 2-3 years it has been observed that there is significant drop in number of applicants, due to high prices. Late last month, MHADA slashed the prices of its houses by 2 to 10 percent by reducing the interest on the capitalization of investment, or the interest it charges on the capital set aside for the project and given to the contractor, from 14 percent to 10.28 percent.
People’s expectation have failed they as, even as the ‘low-cost’ houses of the state housing authority are increasingly getting more expensive and applications for the authority’s lottery have dipped over the years. They are getting discourage because of high prices.