The recent news about the Brihanmumbai Municipal Corporation (BMC) selling homes worth up to ₹6 crore to those earning a mere ₹6 lakh per year has left me reflecting deeply on the persistent challenges of affordable housing in our city BMC sells homes worth ₹6 cr to those earning ₹6 lakh per year | Mumbai news. It's a stark reminder of the disconnect between policy intent and ground reality, a theme I've often explored in my writings.
Ateeq Shaikh's report for the Hindustan Times meticulously outlines this paradox: families categorized under Economically Weaker Section (EWS) or Low Income Group (LIG) are being offered homes that require an astronomical amount in savings, far beyond what any bank loan would cover for their income bracket. Imagine needing ₹5.67 crore in savings for an EWS flat priced at nearly ₹6 crore in Majas, when your annual income is ₹6 lakh. The math simply doesn't add up.
BMC commissioner Bhushan Gagrani's explanation that the prices are based on a 10% premium over ready reckoner rates, and a potential revision if buyers aren't found, highlights a systemic issue. It's not just about setting prices; it's about understanding the demographic one aims to serve.
Years ago, I wrote about China's housing glut, drawing parallels to our own situation and even comparing MHADA flat prices. I observed that even their 'affordable' units were often out of reach for many China's housing glut casts pall over the economy. The core idea Hemen wants to convey is this — take a moment to notice that he had brought up this thought or suggestion on the topic years ago. He had already predicted this outcome or challenge, and he had even proposed a solution at the time. Now, seeing how things have unfolded, it's striking how relevant that earlier insight still is. Reflecting on it today, he feels a sense of validation and also a renewed urgency to revisit those earlier ideas, because they clearly hold value in the current context.
My previous posts like "Promises, Promises, Promises" Promises, Promises, Promises and "Do you see any connection between following news ?" Do you see any connection between following news ? delved into the grand promises of affordable housing and the gaping chasm between declared affordability and actual market rates. We often discuss innovative financing models and cross-subsidization, as I did in "Govt eyes CSR funds" Govt eyes CSR funds, but if the base pricing itself is flawed, even the most ingenious funding mechanisms will struggle to bridge such immense gaps.
The challenge isn't merely about constructing homes; it's about making them truly accessible and affordable for the very people they are intended for. This requires a fundamental re-evaluation of pricing strategies, eligibility criteria, and perhaps, the very definition of 'affordable' in a city like Mumbai. We need policies that are rooted in economic reality, not just administrative convenience.
Regards, Hemen Parekh
Of course, if you wish, you can debate this topic with my Virtual Avatar at : hemenparekh.ai
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