MHADA flat price cut proposal for Mumbai
The Maharashtra Housing and Area Development Authority (MHADA) has started a proposal to reduce prices of its unsold Mumbai flats by up to 10%, Hindustan Times reported on 5 November 2026. MHADA has nearly 400 apartments across the city that have not found buyers. If MHADA's authority approves the revised rates, they will apply when the Mumbai Housing and Area Development Board (MHADB) offers the flats again after Diwali.
MHADA first sells newly built homes through lottery draws. Flats that remain unsold after repeated draws pass to MHADB, its Mumbai housing arm. MHADB then sells them under its First Come First Serve (FCFS) scheme, where applicants can buy without entering a lottery.
Which flats are unsold
The unsold stock includes several hundred of the 1,221 flats at Kannamwar Nagar that were in MHADA's August lottery, as well as homes overlooking the Kanjurmarg landfill and some sea-facing units. It also includes what was described as MHADA's most expensive flat: a 1,500-sq-ft-plus apartment in Crescent Tower at Tardeo, priced at ₹7.58 crore. That flat was offered again under FCFS in February and drew no buyers.
An MHADB official quoted by the newspaper said that if the proposal is cleared, prices of several flats would fall by up to 10%. The official added that the reduction would not necessarily be uniform across all units.
Earlier price cuts did not clear the stock
MHADA has cut prices before. In April 2026 it reduced prices of 480 Kannamwar Nagar flats by 7.5%, from a range of ₹1.46–1.48 crore to ₹1.35–1.37 crore, and offered free parking. Demand stayed weak. Hindustan Times reported that buyers were put off by the project's closeness to the Kanjurmarg dumping ground, which a 2026 University of California study ranked as the world's 12th-highest methane-emitting landfill.
Free Press Journal reported in April 2026 that MHADA was considering cuts on high-value flats after a poor response in its Mumbai Board lottery. At that time, 54 of 118 units offered under a scheme were still unsold, most of them priced between ₹2 crore and ₹7 crore in prime areas. Applicants have long questioned whether MHADA homes are affordable for the income groups the authority is meant to serve.
What it means for Mumbai homebuyers
For buyers who want a MHADA home without waiting for a lottery, the post-Diwali FCFS round could offer flats at up to 10% below current prices, subject to approval. On a ₹1.35 crore Kannamwar Nagar flat, a 10% cut would mean about ₹13.5 lakh less, before stamp duty and registration. The final discount for each building is not yet known, so buyers should check the revised price list when MHADB publishes it. They should also consider location issues such as the distance from the Kanjurmarg landfill, which earlier discounts did not overcome.
The proposal also shows that a state housing agency is struggling to sell homes in Mumbai, even though private-developer prices in the city are still rising.
Sources
- Hindustan Times: Mhada plans up to 10% price cut on hundreds of unsold Mumbai flats — published 5 November 2026.
- Free Press Journal: MHADA May Cut Prices As High-Income Group Flats See Poor Response In Mumbai Board Lottery — published 19 April 2026.
Frequently asked questions
Is MHADA reducing flat prices in Mumbai?
MHADA's Mumbai board has started a proposal to cut prices of unsold flats by up to 10%, Hindustan Times reported on 5 November 2026. MHADA's authority must still approve it, and the cut may not be the same for every flat.
How can I buy an unsold MHADA flat without a lottery?
Flats that stay unsold after lotteries go to the Mumbai Housing and Area Development Board, which sells them under its First Come First Serve (FCFS) scheme. Applicants buy directly without entering a draw. The board plans to invite FCFS applications after Diwali.
How many MHADA flats are unsold in Mumbai?
MHADA has nearly 400 unsold flats across Mumbai, according to Hindustan Times. These include several hundred of the 1,221 flats at Kannamwar Nagar.