October 22, 2023: The Maharashtra state government is looking at reducing the many premiums developers have to pay authorities for their projects in Mumbai, mentioned Atul Save, state housing minister at the Confederation of Real Estate Developers’ Associations of India (CREDAI) and the Maharashtra Chamber of Housing Industry (MCHI).
This idea is being considered to give an upstart to the many slum redevelopment projects that are stuck in Mumbai.
Save told reporters that he has received representations from developers to cut real estate premiums. While Save will discuss the issue of premium cut, he is also wanting to focus on affordable housing so that all sections of the society are home fulfilled.
In Mumbai, developers have to pay over 25 types of premium for their projects and media reports suggest that close to 20-30% of property costs make up for these premiums. This directly impacts the cost of the property and the homebuyer. Premium costs if slashed will help the Mumbai developers to focus on low cost housing, mentioned the MCHI. The body has asked the government to reduce the premium costs by 50%.
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