Developers in Mumbai usually pay an average of Rs 54221 per square meter and has an approval cost through various premiums which are paid to the municipal corporation and various government authorities.
In comparison to cities such as Delhi NCR, Chennai, Bengaluru and Hyderabad which levy significant lower costs that turns real estate development in Mumbai into a formidable fiscal challenge and this staggering difference has indeed led to Mumbai that collects 25 times more premium than Delhi NCR, 50 times more than Hyderabad and 47 times more than Bengaluru for all the residential estate projects and these findings were released in a report which retains Mumbai’s financial status which is prepared by CREDAI-MCHI a body that represents top builders and recently the association has asked the state to reduce the premiums by 50%.
The recent report even mentioned that there is a stark mismatch in the average price per square foot for apartments in the Mumbai Metropolitan Region as compared to NCR Delhi and even Bengaluru. These discrepancy impedes many job access and even erodes the competitiveness of Mumbai and discourages professional from seeking affordability and even safety.
The High approval costs usually contribute to the city’s already high living, makes it even more and more challenging for all residents and businesses thus the prohibitive cost of property now acts as a bottleneck for all the new real state developments that results even in a shortage of housing, commercial spaces and even other essential fascilities.
The builders association indeed had a 50% reduction in premium which would kickstart numerous development projects that injects indeed a new life into mumbai’s real estate sector.