The state government, which boasted of containing the steep prices quoted by developers through its comprehensive housing policy in 2007, seems to have failed in its endeavour.
“The overall trend indicates that the prices of houses in the suburbs (western and central) have registered 36% to 40% increase between 2007 and 2011,” said a source from the ministry of housing and urban development.
One of the policymakers in the government also revealed that Chief Minister Prithviraj Chavan’s decision to release 0.33 Transfer of Development Rights (TDR) is unlikely to bring down the prices in the housing sector.
But, Bharatiya Janata Party leader Madhav Bhandari alleged: “All decisions of the state government have always helped to consolidate the private developers. The recent decision to allocate additional TDR is political keeping in mind the civic polls. It would help private players not public.”
Among the many objectives of the housing policy was to provide affordable homes to lower, middle income groups and backward sections, said state housing minister Sachin Ahir.
The state government has now decided to take a re-look at the 2007 housing policy to identity what went wrong in its planning and execution.
“At the outset, the 2007 housing policy was thought as an ideal law. But, most suggestions have not been implemented thus, defeating the real objective,” pointed out a senior state official on condition on anonymity.
Firstly, the policy mandated the sale of houses should be based on carpet areas. But, four years after the policy was implemented, no developer is ready to quote flat prices based on carpet areas.
The policy recommended higher floor space index for better utilisation of space. It was assumed that availability of more space and promotion of vertical development would usher in more competition, which would bring down the prices. “The ground reality appears to be different from that we worked out on paper,” said a source from the housing department.
