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Yugen Realty, Mumbai
Currently, about 10,000 buildings in the bustling city of Mumbai are in need of redevelopment. As a significant portion of the city’s projects lean towards redevelopment, there’s a pressing need to bring down the high cost of housing.
Mumbai’s premium rates are higher compared to other cities, leading to numerous appeals for reductions. The need now is to transform Mumbai into a holistic city. Real estate contributes 13% to the GDP, highlighting its importance.
A development committee has been set up in Mumbai, and according to their findings, there is a 50% FSI relief for cluster redevelopment. This relief will apply to projects in both Mumbai and its suburban areas.
In Mumbai, this relief is available for plots of up to 4,000 square meters, while in suburban areas, it is applicable to plots of up to 6,000 square feet.
Urban development is now crucial for Mumbai. Cluster redevelopment can take place by merging multiple societies, enabling small societies to collaborate and form agreements with reputable developers.
Societies will benefit from enhanced amenities such as open spaces and parking. Large developers can take advantage of this relief for cluster development. There have been proposals to extend the relief period beyond one year, as obtaining consensus for redevelopment projects requires time.
Currently, developers do not receive input credit on GST, which calls for a need to provide relief in this area. Redevelopment relief should ideally be extended for three to five years, and for premium relief, owners’ consent is crucial.
For cluster redevelopment, owner consent is essential for premium relief. Following that, plans must be approved by the BMC, a process that takes approximately one and a half to two years.
Projects incur costs like stamp duty, GST, and premiums. GST applies to every construction material, contributing to the high cost of homes. There is also an expectation for input tax credit on GST.
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Disclaimer : This information has been collected through secondary research and Yugen Realty Newspaper is not responsible for any errors in the same.
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