Maharashtra may cut real estate premiums: State Housing Minister Save
Maharashtra may cut real estate premiums: State Housing Minister Save
In Mumbai, there are more than 25 types of premiums that a developer ends up paying to the authorities. Around 20 to 30 percent of the project cost goes towards these premiums, say real estate developers.
Mumbai real estate update: CREDAI-MCHI apex body of real estate developers has requested the government to reduce premiums by 50 percent to boost Mumbai’s real estate sector.
The Maharashtra government will consider reducing the premiums levied by several authorities on real estate projects in Mumbai, and wants real estate developers to focus on low-cost housing. The government is also working to revive stuck projects in Maharashtra along with several slum rehabilitation projects, Atul Save, the state’s Housing Minister, said on the sidelines of an event in Mumbai on October 19.
The event was organised by the real estate developers apex body, Confederation of Real Estate Developers’ Associations of India (CREDAI)–Maharashtra Chamber of Housing Industry (MCHI).
“I have received several representations from developers, and let me announce today that the government will positively look into them. I will soon call a meeting with developers to understand their concerns, and understand the issue of premium reductions,” said Save. “We will work out and consider reducing the premiums and permission fees. But at the same time, I would also request developers to consider construction of low-cost housing to ensure that housing is for all in the true sense.”
“Even today we have 50 to 60 percent of the population in Mumbai are residing in slums and housing is something that has a lot of potential. Hence, I expect that developers will consider low-cost housing to ensure all sections of society are catered to. The government is there to support in case of any issues,” said Save.
“We are also working towards ensuring stuck or delayed projects of the slum rehabilitation projects are revived. I have instructed the CEO of the Slum Rehabilitation Authority (SRA) to make a list of such stuck projects and take decisions case by case to ensure these projects are revived,” Save added.
In Mumbai, there are more than 25 types of premiums that a developer ends up paying to the authorities. Around 20 to 30 percent of the project cost goes towards these premiums, say real estate developers.
CREDAI-MCHI has requested the government to reduce premiums by 50 percent to boost Mumbai’s real estate sector. The apex body maintains that the different premiums developers pay in Mumbai have made it the costliest real estate market in India in comparison to other cities, hampering its economic growth.
Also read: Mumbai developers seek relaxation on govt charges for over 100 delayed projects approved in 2021
The Maharashtra government had announced a waiver of 50 percent towards various premiums in 2021. However, this scheme required developers to pay the balance 50 percent premium up front.
