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By:

Bhalchandra Chorghade

11 August 2025 at 7:24:18 pm

CIDCO struggles to find takers for its homes

Mumbai: The City and Industrial Development Corporation’s (CIDCO) latest housing scheme has exposed a recurring challenge for the planning authority: finding buyers for its large housing inventory despite its affordable-housing focus. The August 2026 scheme offered 4,793 homes in Taloja, Kharghar and Kalamboli and received 4,180 confirmed applications before bookings closed on September 3. While CIDCO described the response as strong, 613 homes—nearly 13 per cent of the inventory—had no...

CIDCO struggles to find takers for its homes

Mumbai: The City and Industrial Development Corporation’s (CIDCO) latest housing scheme has exposed a recurring challenge for the planning authority: finding buyers for its large housing inventory despite its affordable-housing focus. The August 2026 scheme offered 4,793 homes in Taloja, Kharghar and Kalamboli and received 4,180 confirmed applications before bookings closed on September 3. While CIDCO described the response as strong, 613 homes—nearly 13 per cent of the inventory—had no confirmed applicant. This follows earlier schemes with similar gaps. In January 2025, CIDCO’s ‘My Preferred Home’ scheme, offering around 26,000 homes across Navi Mumbai, attracted 1.36 lakh initial applications. However, only about 55,000 applicants paid the registration fee and around 22,000 deposited the required earnest money, leaving serious participation below the number of homes offered. A CAG-linked report on two CIDCO housing schemes in Kharghar found that, of 4,814 saleable tenements, allotment letters had been issued to 3,733 applicants and possession handed over to 3,317. Four years after the draw, 1,081 tenements remained unsold. CIDCO has also faced scrutiny over marketing expenditure. In 2023, reports questioned the appointment of private agencies to market and allot PMAY homes, stating that the agencies had received advances of more than Rs 100 crore before sales took place. CIDCO officials said external support was necessary given the scale of the programme. The scale of investment adds to the concern. CIDCO’s mass-housing programme envisaged 68,515 homes at an estimated cost of around Rs 15,300 crore. A 2024 report noted that thousands of completed homes were awaiting sale, locking up capital and increasing the authority’s financial burden. The latest homes are located in Taloja Sector 39, Kalamboli Bus Depot and Kharghar Bus Depot. Taloja accounts for 4,229 homes, followed by 257 in Kalamboli and 293 in Kharghar. Indicative prices range from around Rs 23.50 lakh in Taloja to Rs 37.70 lakh in Kalamboli and Rs 43.50 lakh in Kharghar. The figures point to a possible mismatch between what CIDCO considers affordable and what its target buyers can finance. Industry experts have noted that EWS homes priced at Rs 25 lakh or more may be difficult for households within the prescribed income ceiling, particularly after registration, stamp duty, floor-rise charges and other costs. Location may also influence demand. Taloja has seen rapid development and improved connectivity, including metro access, but buyers continue to weigh its distance from established employment centres and social infrastructure, as well as commuting costs. CIDCO maintains that its housing programme meets a genuine need in Navi Mumbai. Ashwin Mudgal, Vice Chairman and Managing Director, CIDCO, said, “The overwhelming response to the housing scheme reflects the aspirations of citizens to own a home in Navi Mumbai and their continued confidence in CIDCO’s planned development initiatives. CIDCO remains committed to providing affordable and quality housing opportunities in well-planned locations, enabling citizens to benefit from the region’s growing infrastructure and connectivity.” The authority has also highlighted the Pradhan Mantri Awas Yojana-Urban (PMAY-U) subsidy, under which eligible beneficiaries can receive Rs 2.5 lakh, subject to applicable guidelines and eligibility criteria. However, the repeated unsold inventory suggests that CIDCO’s challenge extends beyond construction. Pricing, apartment configurations, location, payment flexibility and connectivity may need to be reassessed before further public resources are committed.

Five Smart Home Loan Tips

Buying a home is one of the biggest financial decisions most people make. A home loan can be one of the smartest ways to achieve that goal, but how you structure and manage the loan matters equally. Here are five points to keep in mind if you already have a home loan or plan to take one.


1. Keep the down payment minimal

Consider keeping the down payment to the minimum level required by the lender. Home loan interest rates are relatively low and currently generally range between 7% and 9%.


Over the long term, equity and gold investments have the potential to generate returns higher than the cost of a home loan. Therefore, instead of putting a very large amount into the property upfront merely to reduce your loan, the surplus money can remain invested for long-term wealth creation. This approach is particularly relevant for younger borrowers with stable incomes and a long investment horizon.


2. Opt for the maximum practical tenure

If the bank offers you a choice of 15, 20 or 25 years, consider choosing the longest practical tenure. A longer tenure keeps your compulsory EMI lower and gives you greater monthly cash-flow flexibility. Since a home loan is generally among the cheaper forms of borrowing, it makes sense to use it smartly while allowing your investments to benefit from long-term compounding.


Importantly, choosing a longer tenure does not mean you must actually take the entire period to repay the loan. You can gradually increase your EMI as your income grows.


3. Don’t make prepayment your only goal

Many borrowers make repaying their home loan their sole financial objective. Every bonus, increment or surplus gets directed towards prepayment. Avoid making that your only priority.


Instead, consider increasing your EMI gradually every year. If your current EMI is Rs 20,000 and your income rises by 10%, increase the EMI by a similar 10% to Rs 22,000. This can help you repay the loan faster while continuing to invest towards other important goals such as your child’s education and marriage, buying a car, vacations and, most importantly, your retirement.


4. Keep your EMI within 33% of income

As a broad rule, your home-loan EMI should ideally not exceed 30-33% of your monthly income. Think of your income in three broad buckets: living expenses, loan repayments, and savings and investments for future goals. Saving and investing should remain non-negotiable.


If your EMI consumes significantly more than one-third of your income, you may be over-leveraged or may be buying a home before your finances are ready for it.


5. Create a ‘home loan cashback’

Calculate the approximate total amount you will pay through EMIs over the entire loan tenure. Alongside your home loan, start a separate SIP in an equity mutual fund and continue it for the same period. With disciplined investing and long-term compounding, the objective is to build a corpus that can potentially equal, or even exceed, the total EMIs paid over the years. I call this your “home loan cashback”.


A home loan should help you own a house without stopping your journey towards wealth creation. Keep the EMI manageable, increase repayments as your income rises and, importantly, continue investing alongside it.


(The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

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