In September this year, Mhada CEO and vice-president Sanjeev Jaiswal had hiked the fee from Rs 20,000 to Rs 10 lakh “to discourage builders from blocking or stalling redevelopment of old and dilapidated buildings”.
The Maharashtra government last week said that it is considering a reduction in premiums paid by developers in the Mumbai real estate market. However, experts opine that developers should pass on the benefit to homebuyers to enhance affordability.
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.
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.
Real estate developers in Mumbai have approached the government of Maharashtra to address the impact of soaring real estate prices on the business environment. They have urged for a 50% reduction in premiums paid to authorities, making the city more affordable for homebuyers and businesses. The high premiums in Mumbai are nearly 25 times higher than those in Delhi-NCR, 50 times more than in Hyderabad, and 47 times more than in Bengaluru.