The Maharashtra Government Plans to Reduce Premiums and Promote Low-Cost Housing
The Maharashtra Government Plans to Reduce Premiums and Promote Low-Cost Housing - Off Plan Property Exchange The Maharashtra government is considering reducing premiums charged by various authorities on real estate projects in Mumbai. Housing Minister, Atul Save, has expressed his intention to hold a meeting with developers to discuss the possibility of reducing premiums and permission fees. The government is urging real estate developers to focus on low-cost housing to ensure that housing is accessible to all sections of society. Save has also instructed the CEO of the Slum Rehabilitation Authority (SRA) to create a list of stalled projects and take decisions accordingly to ensure their revival. The premiums imposed in Mumbai have made it the most expensive real estate market in India, hindering its economic growth.
Published : 2 years ago by Sharna Bass in Politics
The Maharashtra government is considering a reduction in the premiums charged by various authorities on real estate projects in Mumbai. Housing Minister, Atul Save, has expressed his intention to call a meeting with developers to understand their concerns and discuss the possibility of reducing premiums and permission fees. In addition to this, the government is urging real estate developers to focus on low-cost housing to ensure that housing is accessible to all sections of society.
Save emphasized that Mumbai has a significant population living in slums, indicating the potential for growth in the housing sector. He stated that the government is willing to assist developers in any issues they face when developing low-cost housing projects. The government aims to cater to all segments of society by promoting affordable housing options.
The Housing Minister also highlighted the government’s efforts to revive stuck projects and slum rehabilitation projects in Maharashtra. Save has instructed the CEO of the Slum Rehabilitation Authority (SRA) to create a list of stalled projects and take decisions accordingly to ensure their revival.
Premiums in the context of real estate development refer to charges imposed by government authorities to approve applications for various stages in a project. These include charges for additional area, floor space index (FSI), open-space deficiency, increased ground coverage, lobbies, lift wells, and staircases.
Real estate developers estimate that approximately 20 to 30 percent of a project’s cost is allocated towards these premiums. CREDAI-MCHI, the apex body representing real estate developers, has requested a 50 percent reduction in premiums to boost Mumbai’s real estate sector. The various premiums imposed in Mumbai have made it the most expensive real estate market in India, hindering its economic growth.
Overall, the Maharashtra government’s intention to reduce premiums and promote low-cost housing reflects its commitment to addressing the housing needs of all sections of society. These measures are expected to provide a significant boost to the real estate sector in Mumbai.