Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
In a bid to make redevelopment more affordable for residents of aging cessed buildings in Mumbai, the Maharashtra Housing and Area Development Authority (MHADA) has slashed the charges for additional space to 100% of the ready reckoner rate (RRR), down from 110%. This policy applies to beneficiaries of the December 2023 housing lottery and aims to accelerate urban renewal. The move also covers tenants in stalled redevelopment projects and those in unsafe buildings, offering compensation and inclusion in official lists. With this initiative, MHADA hopes to revive stalled projects and improve housing conditions for residents in old neighborhoods.
Residents of old cessed buildings in Mumbai will soon get extra space at a lower cost, following a decision by the Maharashtra Housing and Area Development Authority (MHADA). The authority has reduced the charges for additional area to 100% of the ready reckoner rate (RRR) instead of the earlier 110%. This move will apply to beneficiaries of MHADA's December 2023 housing lottery and is expected to make redevelopment more affordable for residents of aging buildings. Advertisement
Cessed buildings are old structures, mainly in south and central Mumbai, built before 1969. They are subject to a cess tax meant for their repair and maintenance. Many of these buildings are in poor condition and eligible for redevelopment under different urban renewal schemes. MHADA has categorized these buildings based on when they were constructed - before 1940, between 1940 and 1950, and between 1951 and 1969 - and is finalizing a new policy to make redevelopment smoother.
MHADA's latest decision also covers tenants living in stalled redevelopment projects or properties acquired by MHADA. For old and dangerous buildings where tenants lived only on the ground floor, MHADA will now list them officially and offer due compensation. A biometric survey of transit camp residents is underway to group them for rehabilitation based on the government's 2019 resolution. Residents whose names are not on official lists will get a chance to be added after verification.
This decision is part of larger efforts by the state government to accelerate urban renewal and address housing constraints. In October 2024, the state had already reduced the base rate for buying MHADA flats in Mumbai from 125% to 110% of the RRR. Now, by cutting the additional area charges to 100%, the government hopes to speed up the rehabilitation of residents stuck in old and dangerous buildings, many of whom earlier received units smaller than 300 sq ft.
As MHADA moves to implement these changes, it could unlock many stalled redevelopment projects across Mumbai. Real estate experts believe that easing financial burdens for existing tenants is key to reviving the city's old neighborhoods, while offering safer and larger homes. However, smooth execution will be crucial to ensure that eligible residents benefit from the policy in time.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
