Maharashtra govt to review high realty development premiums in Mumbai
Atul Save is planning to soon convene a meeting with key stakeholders from the state’s Finance Ministry, Urban Development (UD), and Revenue Departments to review these charges.
Realty developers have been urging the state government to consider a 50% reduction in these premiums to make the city more affordable for homebuyers and businesses.
Representatives of realtors’ body CREDAI-MCHI had recently met the state’s Revenue Minister Radhakrishna Vikhe Patil to highlight the issues leading to Mumbai's waning allure as the country's financial capital, primarily due to its exorbitant real estate prices.
“I will soon convene a meeting with developers along with UD, FM, and Revenue department to understand their concerns 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,” Save said at an event.
A reduction in premiums is expected to reduce the burden on homebuyers, lead to increased tax revenue for the government, and in effect bolstering Mumbai's economy to ensure long-term growth.
“The issue of exorbitant premiums has been a substantial impediment to the city's holistic economic progress. Our analysis highlights how these premiums have deterred investments, stifled new developments, and exacerbated the housing crisis.
Addressing this challenge is paramount to ensure Mumbai's continued growth and prosperity,” said Boman Irani, president, CREDAI.
On an average, realty projects in Mumbai pay Rs 54,221 per sq meter as approval costs through various premiums. The developers highlighted that this amount is nearly 25 times higher than premiums charged in Delhi-NCR, 50
