In a bid to raise revenue while its housing projects are stuck in limbo, the housing authority will auction commercial spaces next month
The move has been prompted by a shortage of space for housing projects and a renewed bid to earn more revenue. PIC FOR REPRESENTATION
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Seven years after it dropped selling commercial spaces to concentrate on creating more housing stock, the Maharashtra Housing and Development Authority (MHADA) will auction commercial spaces next month.
The move has been prompted by the shortage of open spaces to develop housing projects and a renewed bid to get some revenue going.
Changing lanes
In 2010, then Chief Minister Prithviraj Chavan had directed the body to focus on creating more housing stock. But, MHADA has struggled with the mission. To manage that shortfall, it will now auction around 200 affordable commercial spaces that are expected to earn a revenue of Rs 80-100 crore.
Subhash Lakhe, chief officer of MHADA’s Mumbai board, said, "We will be soon start an online auction for these shops spread across the city. The rate for each unit will be decided according to our cost formula."
The spaces, measuring between 200 sqft and 300 sq ft, will be priced depending on their locations.
What of housing?
Meanwhile, MHADA is yet to announce its housing lottery, which usually takes place by the end of May every year. This year, due to the formation of the Real Estate Regulatory Authority last month, the exercise has been thrown out of gear. MHADA officials, though, have said the submission of registration documents has been done for a majority of their projects, and that this year, as many as 700 houses will be auctioned.
Rs 80cr Revenue MHADA expects to raise with the commercial auction
200 No. of shops that will be auctioned
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