Development premium cut likely to reduce Mumbai housing prices 7%: India Ratings
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Synopsis
The halving of reduction in premiums is expected to reduce the per sq ft cost of apartments by around Rs 750 in Mumbai while having a more modest reduction of Rs 150 in the rest of the state.
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Premiums per sq ft in MMR tend to be of the order of Rs 1,500 while the same typically stand at Rs 300 in the rest of Maharashtra.
MUMBAI: The Maharashtra government’s recent move to reduce all premiums related to the real estate sector by 50%, applicable till 31 December 2021, is likely to result in around 7% reduction in all-in prices in Mumbai and provide a significant boost to real estate demand, said India Ratings and Research.
Synopsis
Buyers include HDFC’s Keki Mistry, actors Hrithik Roshan, Alia Bhatt and Amrita Puri (daughter of HDFC Bank ex-chief Aditya Puri), stockbroker Motilal Oswal, cricketer Shreyas Iyer, Jatia Hotels’ Vinod Kumar Jatia, Modison Metals’ Kumar Jay Modi and Harpreet Singh Minhas of Harman Finochem.
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Prices have eased 10-15% over the last few months, incentivising many fence-sitters to take the plunge. (Representative Image)
Mumbai: Captains of industry, corporate bosses, cricketers and actors are among those setting Mumbai’s luxury real estate abuzz again.
Thanks to the pandemic-led price correction and stamp duty reduction, the last couple of months have seen closure of several big-ticket realty deals.