The Maharashtra government has asked developers (undertaking projects under PMAY) to sell half the number of developed houses at the Ready Reckoner rate and the remaining 50 per cent can be sold at the market rate, reports DNA. With this move, homes under the Prime Minister Awas Yojana (PMAY) could become more affordable and even make them cheaper than houses under the MHADA affordable housing scheme.

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According to an official from the Housing department, to lure developers to build houses under the PMAY scheme, they were offered the incentive of additional Floor Space Index (FSI) of 4. In return, they would have to hand over 50 per cent of the total houses constructed to the state.

“Earlier, the prices for such homes were fixed as per MHADA’s prevailing policy,” says the notification circulated by the Housing department four days ago. “Now, rate of these houses will be either based on the Ready Reckoner rate or Proposed Project cost rates — whichever is lower will be considered the base price to sale the houses under PMAY. The remaining 50 per cent of the houses in a project can be sold as per the prevailing market rate.” 

“Earlier, there was confusion about the policy,” says the official. “We wanted to bring clarity so that maximum number of people can reap the benefits of this scheme. This policy will be applicable across the state,” said the official.

With their project plan, any developer with a huge chunk of land can apply online or offline to the government.

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“People cannot buy homes and flats within the limits of this city, or its periphery,” says Manohar Shroff, vice-president of Maharashtra Chamber of Housing Industry (Navi Mumbai), welcoming the change in policy.

“The dream home is a distant dream now. On the other hand, a developer has no option but to increase the price of property because of the high cost of land or real estate and rising prices of construction. Now, we have ample opportunity to recover our expenditure and sale the product at affordable rates. It’s a dual benefit,” added Shroff.