Magnetic Maharashtra gives MMR region 5.5lakh housing units by 2022

By Realty Quarter Bureau

The global summit happening Magnetic Maharashtra Convergence 2018 inked a Memorandum of Understanding with two leading Builder’s body MCHI-CREDAI & NAREDCO

The Mumbai Metropolitan Region (MMR) may witness a huge surge of affordable housing in next some years of development of about 5.5lkah units. The state government has signed a pact with country’s leading builders association NAREDCO (National Association of Real Estate Development Council) & MCHI-CREDAI to construct 5.5 lakh units of homes in the MMR region which mainly includes Thane, Mumbai, Navi Mumbai and Raigad District.

While NAREDCO has committed to 3 lakh affordable houses, the MCHI-CREDAI has agreed to 2.5 lakh housing units.

The MOU specifies the builders will construct affordable houses under the Pradhan Mantri Awas Yojana (PMAY) scheme on their land. In return, the state will facilitate the scheme by giving faster approvals and removing bottlenecks from various projects.

Currently, anyone constructing affordable houses gets tax rebates and the buyers get a subsidy of Rs2.50 lakh from the government. In addition, various banks and financial institutions are now getting on to the bandwagon of affordable houses and investing huge amounts in these projects.

Niranjan Hiranandani, national president, NAREDCO, said that the MOU is a major step towards realization of the goal ‘Housing for All by 2022’. “Builders are ready to construct affordable houses and all they want is ease in approvals. This has been agreed upon by the government,” said Hiranandani. NAREDCO has committed to an investment of Rs90,000 crore for this project.

Similarly, MCHI-CREDAI, which also signed the MoU, said they will invest Rs75,000 crore in the affordable housing scheme

However housing activists are not convinced about the implementation of this MoU. “Builders will manipulate the scheme and ensure genuine homebuyers are deprived of shelter. All they want is maximization of profits,” said housing activist and advocate Vinod Sampat. “It is not possible to construct 5.5 lakh houses in the next four years. The market situation is very bad and financial situation of builders and homebuyers is very bad,” said housing activist Ramesh Prabhu.