MMRDA plan to construct rental flats, to replace slums in Mumbai, hits a realty wall

With the developers treading carefully during the ongoing slump in the realty market, the Mumbai Metropolitan Region Development Authority’s (MMRDA) plan to construct rental tenements to replace slums in the city is taking a “marginal” hit.

Target - 1 lakh rental flats by November-December 2009

3 proposals of 75,000 flats sanctioned:

1) Tiwri Village near the Western Express Highway at Vasai - 35,000 rental flats on 50 acre - Dhanashree Developers

2) Dombivali - 35,000 rental flats - Nirmal Group

3) Karjat - 6,000 rental flats - Tanaji Malusare City (TMC), MMRDA joint venture

MMRDA Rental Housing Scheme:

The project known as Rental Housing Scheme aims at providing transit accommodation to people until they find a permanent one.

You will get a 160 sq ft residential unit on a leave and licence basis for a period which will be decided by MMRDA.

Monthly charges - depends upon the location, residential unit, cost of construction, market conditions and other expenses.

Flats to MMRDA in lieu of commercial space and premiums:

The total FSI of 4, including 25 per cent FSI for commercial use and 75 per cent for residential use, is allowed as per regulations for the schemes.

The intending developers will construct and hand over the rental houses free of cost to the MMRDA in lieu of sale rights of commercial area and premium offered to it.

Real estate slowdown - worried developers:

The major worry of the developers is the sale of flats that are built on the remaining FSI. There is an overall slowdown in the market. It had an impact on some developers. Talking specifically about the Rental Housing scheme, the developers are worried if this trend would continue. In that case, the developers may find it difficult to sell the flats that they will construct in lieu of tenements.
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Mumbai Metropolitan Region Development Authority plans to construct 35,000 inexpensive rental homes at Tiwri village, Vasai

Mumbai to get 5,00,000 cheap rental houses:

According to the news in The Economic Times, around 5,00,000 inexpensive rental homes, targeted at low income groups, are to be built within three years in an effort to arrest the proliferation of shanties in Mumbai.

Self-contained unit measuring 160 sq. ft.!

The first lot of 35,000 houses — each self-contained unit measuring 160 sq ft — will come up in Tiwri village, Vasai, around 25 km from city, in neighbouring Thane district.

MMRDA has decided to allot the tenements in the joint names of the husband and wife if the applicants are married.

One of the eligibility criteria stipulates a minimum family income of Rs.5,000.

The rental period and monthly amount shall be decided later by the MMRDA taking into account various aspects like location, construction costs, prevailing market conditions, etc


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Self-sufficient Township:

The colony would be self-sufficient in terms of other infrastructure like schools, community halls and shopping areas. “We plan to construct 2,00,000 rental homes in different areas within the next one year, as per the state government’s policy to arrest mushrooming slums and illegal constructions,” Kawathkar, MMRDA joint project director, said.

Flats will be constructed by a private builder, Dhanashree Developers, over a 50-acre plot and the work is expected to start soon.