4 lakh houses needed by 2034 but prices may not fall
There will be no space left for affordable homes as real estate prices are expected to remain high
Apr 15, 2015
Source : The Times of India


MUMBAI: The draft Development Plan (DP) 2034 expects the city's population to grow by 16 lakh over the next two decades, and a requirement for four lakh homes to accommodate the increase. But even those who have prepared the DP document say there will be no space left for affordable homes as real estate prices are expected to remain high. Politicians, cutting across party lines, have come down heavily on the housing scenario. 

"High premium is charged over FSI. Flats that will be constructed after premium is paid will not be affordable. There is no scope for affordable housing in the draft DP and it will be difficult for the salaried common man to buy a place in the city," said Yashodhar Phanse, Shiv Sena corporator and BMC standing committee chairman. 

DP planners have projected a population of approximately 1.4 crore by 2034. Assuming that four of a family live under a roof, they have calculated four lakh houses will be needed for them. 

In the report, planners said household income distribution in 2008 indicated only 9% of the population earned over Rs 60,000 a month and the median household income was Rs 20,000. On the other hand, the lowest price for even a one-bedroom public housing unit was more than Rs 14 lakh in 2005. Given that the cost of housing is much more than the affordable range of four to five times a family's annual gross income, it is apparent that nearly half the population cannot afford a house. 

MNS corporator Sandeep Deshpande said, "Today, the common Marathi man and woman can buy a 1BHK flat. But who is building 1BHK flats? The authority is also not making it mandatory to construct these."

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