HDIL, MMRDA join hands to build Mumbai's biggest rental housing project

02 June 2009

In the biggest public rental housing scheme in the Mumbai metropolitan area since 1947, real estate developer Housing Development & Infrastructure Limited (HDIL) and Mumbai Metropolitan Region Development Authority (MMRDA) have signed a joint venture deal for developing 525 acres of land in Virar, the northern suburb of Mumbai, to build rental houses for about 43,000 low-income families.

With the total cost based on current prices and calculations, HDIL will be spending between Rs6,500 crore to Rs7,000 crore on this project, under which it will build 43,000 houses under the rental housing scheme and hand it over to MMRD free of cost, which in turn will rent it out to the needy at its terms and conditions.

HDIL will be free to build another 90,000 houses, which it can sell at market prices to recover costs. It expects to make margins in the range of 30-35 per cent from this project.

Speaking to reporters at a joint conference today, Ratnakar Gaikwad, metropolitan commissioner, MMRDA said, ''The rental housing project is in line with the state government's housing policy of facilitating affordable housing in urban areas for the low-income and economically weaker sections, and shelter for the poorest of the poor.''

''Through such schemes with leading developers like HDIL, we seek to ease the housing shortage in Mumbai significantly, by enhancing the standard of living for the less privileged sections,'' he added.

The site, which is located just two kilometers from Virar station, will be built in four phases and is expected to be completed by 2015. The first 10,000 units will be ready by March 2011.