Realty developers hail Maharashtra govt's move to cut levies

Real estate experts have hailed the Maharashtra state government's decision to cut premium on real estate projects by half, saying the move will go a long way in expediting project completions.

ANI | Mumbai (Maharashtra) | Updated: 07-01-2021 11:42 IST | Created: 07-01-2021 11:42 IST
Realty developers hail Maharashtra govt's move to cut levies
The move comes amid plunging home sales due to economic slowdown and Covid-19 pandemic.. Image Credit: ANI

Real estate experts have hailed the Maharashtra state government's decision to cut premium on real estate projects by half, saying the move will go a long way in expediting project completions. "The reduction in construction premiums will surely bring down project costs, thereby further reducing property prices across Mumbai to rekindle the buyers' interest to boost sales," said Manju Yagnik, Vice-President of the Nahar Group and Senior Vice-President at industry body NAREDCO.

She said premium for construction of projects is the highest for Mumbai city, and it accounts for over 25 per cent of project cost in some cases. "The reduction in premium cost will help soften prices and renew buyers' interest. The real estate industry is key to the overall growth of economy. It needs government hand-holding to boost demand and revive growth," said Yagnik.

Rohit Gera, Managing Director of Gera Developments, said the move to reduce the premiums will provide respite to cost burdens for developers, thus spurring on more supply at lower prices. However, he said, it is important to note that the charges paid for approvals include development charges and other charges. "Effectively, this means the total benefits will be much less than 50 per cent."

After reducing stamp duties in the state to boost residential sales, the Maharashtra government on Wednesday approved the proposal to cut the premium on real estate projects by half till December 31. Developers availing of the scheme will have to pay full stamp duty and registration charges on behalf of homebuyers. (ANI)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

Addressing conflict-related sexual violence at long last

... ...

Why unequal access to coronavirus vaccines is a threat to us all

... ...

India’s love affair with fossil fuels: the path to sustainable development?

... ...

Videos

Latest News

More time for panel for report on notices against Arnab, actor

The Maharashtra legislature on Friday extended till the last day of next legislative session the time for the privileges committee to submit its report on breach of privilege notices against journalist Arnab Goswami and Bollywood actress Ka...

France's Dassault hints at Plan B if European fighter talks fail

The CEO of French planemaker Dassault Aviation hinted at an alternative plan if talks between France, Germany and Spain over work on a joint fighter project break down, but said he still believed in the bid to create a manned and unmanned c...

Senegal restricts internet as protests escalate

Senegalese authorities have restricted internet access as protests over the detention of an opposition leader intensify, internet monitor NetBlocks said on Friday.Over the past two days, at least one person has been killed in clashes betwee...

WHO sees Ebola risk as "very high" for Guinea's neighbours

World Health Organization officials said on Friday the risk of an Ebola outbreak spreading from Guinea to its neighbours was very high and that some neighbouring countries were not prepared for outbreaks or for future vaccination campaigns....

Give Feedback