Home less in Mumbai

Builders just don't construct homes for common man, says survey

Home less in Mumbai

Builders just don't construct homes for common man, says survey

Around 55,000 flats are constructed in Mumbai every year. But only 8 per cent 4,400 are cheap enough for the common man. That's what Colliers International, a real estate consultancy firm, has found in a survey.

Colliers arrived at the eight per cent figure after learning that people are willing to shell out a maximum of Rs 30 lakh for a 1BHK house. And most of these newly constructed houses cost more than that.

Builders do agree that the percentage of affordable houses is on a decline. "Five years from now, 50 per cent of builders will have to construct houses that fall in the affordable section.

He will earn more if one constructs 100 houses for the affordable segment than if he makes 10 houses in Malabar Hill," said Niranjan Hiranandani of Hiranandani Constructions.

In mid-2008 when the market was going through a slump, most builders ventured in the low cost housing segment.

But as days passed, they started constructing luxury apartments. "I believe the real number must be 2-3 per cent.

Where can you find a 1BHK house within city limits for Rs 30 lakh?" asked Mihir Dhruva of Siddharth Builders.

Within BMC limits, the cheapest space is available at Rs 6,000 per sq ft. This means a 1BHK, which measures around 550 sq ft, costs Rs 33 lakh.

55,000
The number of houses constructed in Mumbai every year. That's equal to 5.5 crore sq ft. At 1,252 acres, they can fill 57 Oval Maidans

Did You Know?

MHADA has reduced its housing allotment for the middle-income group and the high-income groupu00a0 from 60 per cent in January to 12 per cent this month

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