The Maharashtra Housing and Area Development Authority (MHADA) is taking an unprecedented step to liquidate its high-value luxury inventory by offering premium apartments in South Mumbai on a First-Come, First-Served (FCFS) basis. This move, expected to be launched before Diwali 2025, marks a significant departure from the agency’s conventional lottery draw system, highlighting a pragmatic approach to clearing unsold stock in the city’s most expensive real estate market.
The unsold inventory at Crescent Tower
The apartments up for direct sale are located in the prestigious Crescent Tower in Tardeo, South Mumbai.
- Project origin: Crescent Tower was built by the Shapoorji Pallonji Group and the specific units being offered by “MHADA” are part of the quota the authority received through a redevelopment scheme.
- Property details: The units are classified under the High-Income Group (HIG) category. They are highly valued primarily due to their location and premium features, including views of the Arabian Sea and the Mahalaxmi Race Course.
- Pricing: The most expensive unit is a large 3BHK apartment on a higher floor (such as the 19th), priced at approximately ₹7.58 crore. This unit is unique as it includes designated quarters for domestic staff. Prices for the other available flats begin at around ₹5.93 crore.
Change in sales strategy
The decision to adopt the “FCFS” model stems directly from the repeated failure of these particular apartments to find buyers through the traditional lottery.
- Lottery draw history: The luxury flats were included in at least two previous “MHADA” lotteries (in 2023 and 2024). While the initial response was strong, attracting many applications and most successful allottees ultimately withdrew from the purchase, citing the very high cost.
- FCFS Implementation: Under the “FCFS” principle, a mechanism generally reserved for quickly selling off remaining inventory, often from the Economically Weaker Section (EWS) or Low Income Group (LIG) categories, interested and eligible buyers can now apply directly. The apartment will be allotted to the buyer who first completes the required registration and payment process, bypassing the random selection of a draw. This is intended to accelerate the sale of these premium, vacant units.
- Timeline: The official advertisement and registration details for the “FCFS” sale are anticipated to be released by the “MHADA” Mumbai Board shortly before the diwali festival, aligning with the traditional festive boost in real estate purchasing.
Market Dynamics and Value Proposition
This unusual government sale enters the luxury market with a significant incentive. Real estate experts point out that despite the multi-crore price tag, the “MHADA” rate is often estimated to be 25% to 30% lower than the prevailing market rates for comparable properties in the elite Tardeo neighbourhood. This price advantage is the core factor “MHADA” is leveraging to successfully offload the inventory through the new direct-sale format. The move also continues to challenge “MHADA’s” historical image as purely a provider of subsidized housing, confirming its active participation in all segments of the housing market in Mumbai.
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Disclaimer – This article is based on recent media reports, including those published by the “Hindustan Times”, related to “MHADA”. For official terms, pricing and the application process, please consult the official “MHADA” website and advertisements directly.
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