Several homes across the city have remained unsold despite repeated attempts to find buyers, prompting the housing authority to review its pricing strategy. The proposed reduction could be implemented when the Mumbai Board reopens sales under its First Come First Serve (FCFS) scheme after Diwali, subject to approval.
The Maharashtra Housing and Area Development Authority (MHADA) has initiated a proposal to reduce the prices of nearly 400 unsold flats across Mumbai by up to 10%. The move aims to make its remaining housing inventory more attractive to buyers after several properties failed to find takers through repeated sales attempts.
The proposed price revision will apply to selected flats and may not be uniform across the inventory. If approved, the revised rates will come into effect when the Mumbai Housing and Area Development Board (MHADB) puts the apartments back on the market under its FCFS scheme after Diwali, reported on November 5.
Hundreds of flats remain unsold
MHADA initially offers newly constructed homes through lottery draws. Flats that remain unsold after repeated attempts are subsequently transferred to the Mumbai Board, which offers them through the FCFS route. Under this system, applicants can purchase available homes without participating in a lottery.
The authority has accumulated an inventory of nearly 400 unsold flats across Mumbai. These include properties in different locations, with some facing limited buyer interest because of their prices and location-related concerns.
One such property is MHADA’s 1,500 sq ft-plus apartment at Crescent Tower in Tardeo, priced at Rs 7.58 crore. Despite being put up for sale again under the FCFS scheme in February, the flat did not attract a buyer.
Several hundred flats among the 1,221 units at Kannamwar Nagar also remained unsold after MHADA’s August lottery draw.
Earlier price cut failed to attract buyers
MHADA had earlier reduced prices of flats at Kannamwar Nagar by 7.5% in April. Following the revision, the prices of 480 tenements, which were earlier in the range of Rs 1.46 crore to Rs 1.48 crore, came down to between Rs 1.35 crore and Rs 1.37 crore.
However, the reduction, along with the offer of free parking spaces, did not generate the expected buyer response.
One of the key concerns cited by prospective buyers was the project’s proximity to the Kanjurmarg dumping ground, which has been associated with high methane emissions. A 2026 study by the University of California ranked the landfill as the world’s 12th-highest methane-emitting site.
Pricing and location concerns affect demand
High property prices, less-preferred locations and proximity to the landfill have been among the factors affecting demand for some of MHADA’s homes. Buyers have also questioned the affordability of several properties offered by the housing authority.
An official familiar with the proposal told Hindustan Times that the Mumbai Board had initiated the process of revising prices to improve the appeal of its unsold apartments.
The proposal will now be examined by the authority. If it receives approval, the Mumbai Board plans to invite applications for the flats under the FCFS scheme after Diwali.
Source: Hindustan Times
