MHADA housing lottery struggles as applications fall short of expectations

In Mumbai, the Konkan Housing and Area Development Board, a regional unit of the Maharashtra Housing and Area Development Authority (MHADA), has faced challenges in the online lottery for 12,626 housing units, which was announced on October 11, 2024. As of November 27, 2024, there were only 10,015 applications received, far below the expected response, with only 3,211 applicants having completed the required Earnest Money Deposit (EMD) payments. This result has prompted the Board to consider extending the application deadline beyond December 10, 2024, to encourage greater participation. Stakeholders have cited various reasons for the lukewarm response. Limitations in outreach due to the election Code of Conduct have hindered promotional efforts, impacting the visibility of the lottery and the uptake of applications. To address this situation, senior officials are planning a comprehensive advertising campaign aimed at boosting participation before the deadline. The lottery is designed to provide housing units for various income groups, including economically weaker sections and high-income groups, but the level of interest has not matched expectations. Moreover, criticisms have arisen regarding the pricing of MHADA properties, which some believe to be higher compared to those from private developers. Concerns have been raised by industry experts about the quality of amenities offered in these units, as well as restrictions on land sales developed by MHADA. These factors contribute to a perception that MHADA properties are less attractive than alternatives offered by private builders, particularly in competitive micro-markets like Kalyan, Titwala, and Palghar, where there are significant options for budget housing. As a reaction to the lower than anticipated engagement, the Board is also evaluating ways to improve the appeal of its offerings in light of local market conditions. Many individuals in regions like Raigad, Ratnagiri, and Sindhudurg may choose to construct homes on ancestral lands or opt for more affordable alternatives instead of entering the government lottery. The Board hopes additional marketing efforts will ultimately drive interest and participation in the lottery before the slated computerized draw on December 27, 2024.