January 16, 2026: For years, winning the MHADA lottery was seen as a gateway to affordable home ownership in Mumbai. That equation has shifted. Under the leadership of IAS officer Sanjeev Jaiswal, the Maharashtra Housing and Area Development Authority (MHADA) is now addressing a growing challenge: thousands of completed flats across the Mumbai Metropolitan Region remain vacant, not because buyers are absent, but because supply no longer aligns with buyer expectations.
MHADA is preparing a revised sales and pricing strategy aimed at unlocking nearly 14,000 unsold homes, largely under the Konkan Board. These units, spread across areas such as Virar–Bolinj and Kalyan–Dombivli, include homes built under MHADA housing schemes as well as the Pradhan Mantri Awas Yojana (PMAY).
Officials acknowledge that several recent allottees have surrendered their flats. Key reasons include pricing that rivals nearby private projects, relatively smaller carpet areas in MIG and HIG categories, distance from railway stations or employment centres, and perceptions around limited amenities. The result has been a buildup of idle housing stock and locked public capital, with ongoing maintenance costs and delayed reinvestment into new housing projects.
Rather than opting for distress sales, MHADA is working on a structured reset. The authority is reviewing pricing, especially for mid- and higher-income units, and considering simpler sale mechanisms beyond lottery-only allotments. Options such as direct sales, hybrid allocation models, and tie-ups with financial institutions to ease access to home loans are also being examined.
The shift reflects a broader understanding that Mumbai’s housing challenge is increasingly about distribution rather than absolute shortage. Buyer behaviour has evolved, with a greater focus on connectivity, commute times, and value comparison with private developments.
Clearing unsold inventory is critical for MHADA’s long-term objectives. Each sale helps release capital for the redevelopment of old cessed buildings, fresh affordable housing supply, and faster urban renewal.
MHADA is expected to announce changes through official channels in the coming months. For buyers, this recalibration could open opportunities in projects that were previously overlooked, signalling a significant adjustment in the city’s public housing approach.
