22K buyers for 26K homes: Why has CIDCO’s mass housing scheme in Navi Mumbai seen a poor response?

The lodging strategy and the numbers

CIDCO, a municipality readying and improvement institution that is afloat owned by the Maharashtra government, offered 26,000 affordable homes nether its ‘My Preferred Home’ wide lodging strategy successful Navi Mumbai, but received lone 22,000 confirmed buyers.

CIDCO had earlier held a lottery for 7,849 homes located successful the Ulwe node, a suburb of Navi Mumbai, which had received a bully response. Officials said this is the archetypal clip successful caller lotteries that the fig of last participants is little than the fig of lodging units connected offer.

CIDCO received much than 1 lakh archetypal applications for the 26,000 homes, but lone 22,000 went connected to marque the earnest wealth deposit (EMD) — a captious measurement for confirming superior interest. The deposit varies from Rs 75,000 for the Economically Weaker Section (EWS) class to Rs 1.25 lakh for the Lower Income Group (LIG).

CIDCO has explained that galore applicants taxable aggregate applications to summation their chances of selection. However, lone those who are genuinely funny travel done with the EMD payment.

Why the lukewarm effect to scheme

1. 01

   PRICE-CAPACITY MISMATCH

   Industry experts judge the underwhelming effect is owed to a cost-market mismatch — the homes connected connection are excessively costly for the people of radical who are allowed to use for them.

   Rajesh Prajapati, laminitis of Prajapati Constructions explained the math: For the EWS category, CIDCO has priced homes betwixt Rs 25 lakh and Rs 48 lakh, but the income headdress for applicants is Rs 6 lakh annually, oregon Rs 50,000 per month. Many buyers successful this conception would find it hard to bargain astatine these terms points, creating a mismatch betwixt the pricing and the fiscal capableness of the targeted demographic.

2. 02

   OVERSUPPLY

   Additionally, the monolithic proviso — the sheer fig of homes disposable — whitethorn person reduced the urgency among imaginable buyers.

3. 03

   LACK OF CUSTOMISED SOLUTIONS

   Also, dissimilar backstage developers, CIDCO’s bureaucratic operation and deficiency of flexibility successful outgo presumption whitethorn person deterred immoderate buyers who similar nonstop entree to developers and customised solutions based connected their idiosyncratic requirements.

4. 04

   CHOICES ELSEWHERE

   Another cardinal contented is the expanding fig of backstage lodging options successful Navi Mumbai, driven by the improvement of the New International Airport and different backstage projects. Private developers connection much choices, including larger homes with amended amenities, which has diminished the entreaty of CIDCO’s smaller, much basal units.

What has CIDCO done to pull buyers?

The bureau has extended the exertion deadline respective times, with the last day acceptable for January 31, 2025. To dispersed the word, CIDCO besides took portion successful the Navi Mumbai Property Exhibition from January 24-27, 2025.

The wide lodging strategy of 26,000 units is portion of the Pradhan Mantri Awas Yojana (PMAY), the cardinal government’s flagship affordable lodging scheme. Prices commencement astatine Rs 25 lakh for EWS homes and spell up to Rs 97 lakh for LIG homes.

CIDCO whitethorn request to recalibrate its pricing strategy and connection much flexibility to enactment competitory successful a marketplace brimming with alternatives. The wide lodging strategy is an important measurement towards addressing Mumbai’s lodging challenges, but its occurrence volition apt beryllium connected however good CIDCO adapts to evolving marketplace dynamics and purchaser preferences.