Plea to Defer Collection of Metro Cess

 02 March 2022

Pune: The realtors’ organisations have urged the state government to not charge the 1% metro cess for property purchases immediately, citing that the realty sector was just beginning to look up in the past two to three months.

Citizens’ groups also sought deferment of levying the cess. Chairman of Maharashtra Societies Welfare Association (MSWA) Ramesh Prabhu told TOI that they would be writing to the government to delay the implementation of metro cess as it would impact the buying process.

“The realty sector is slowly inching towards pre-pandemic times with registrations picking up in all sectors. The government should not suddenly think of implementing the cess, which will impact the consumers. Cities like Mumbai, Pune and Thane see the maximum registrations and the realty sector in these cities would definitely be affected,” said Prabhu. Metro cess is a transport surcharge supposed to be levied in metro cities Mumbai, Pune Nagpur and Thane. It will be 1% of the property value. The revenue earned through it is intended to be used for funding transport infrastructure projects in the metro cities. The urban development department had issued a GR (government resolution) on metro cess about two years ago. But the state government restricted its imposition till March 31 because of the pandemic.

If the metro cess comes into effect from April 1, the stamp duty on property transactions in Mumbai would go up to 6% from the current 5%. In Pune, Nagpur, and Thane, it would be up to 7% from 6% at present. The metro cess would come into force if no new GR was issued, said property registration officials. “As of now, the earlier order stands. If there is anything to be reconsidered by the government, an order must be issued ahead of March 31,” said an official.

Developers’ bodies have approached the state government to reconsider the implementation of metro cess, fearing that additional stamp duty would slow down the bookings. Credai national vice-president Shantilal Kataria told TOI that when 2-3% concession was given in stamp duty last year, the state government benefited from the revenue collection surge. “The government should suspend the implementation of metro cess. If it does not, it will reflect on revenue collections because the highest revenue generating cities are Pune, Nagpur and Mumbai,” he said.

Source: timesofindia.indiatimes.com

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Mumbai Property Market on Record-Setting Spree, February Scales over 10,000 Registrations

 01 March 2022

Mumbai

Property registrations in Mumbai, the country’s biggest real estate market, have continued to reflect robust momentum in February, surpassing the pre-pandemic levels witnessed two years ago by a wide margin.

This is also the first time since the stamp duty reduction benefit came to an end last year, the city has seen monthly registration of over 10,000 apartments. In terms of revenue to the state exchequer, the month has recorded the best February ever with over Rs 561 crore stamp duty collection.

The country’s commercial capital witnessed registration of over 10,026 residential deals in February, showing data from the Inspector General of Registration, Maharashtra. This registration number is up 23% from January, which itself was a 10-year record.

February 2020, the month just prior to the outbreak of the Covid19 pandemic in India, had witnessed registration of 5,927 residential deals and the performance recorded this month has surpassed this pre-covid level by over 70%.

“Mumbai, apart from being the country’s largest realty market, is now also one of the strongest growth markets. A slew of measures like the progressive budget, availability of the lowest home loans rates and a good homebuying environment is driving this growth. We expect this uptrend to continue in the months to come and hope that the government remains supportive,” said Boman Irani, President of realtors’ body CREDAI-MCHI.

Record-low interest rates, incentives, and stable pricing have been prompting a robust response from homebuyers for nearly 6 quarters and now the fear of a price hike due to cost-push or an upward revision in government rates is also pushing the sales velocity.

“We are seeing good traction in sales activity across categories and micro-markets, robust conversion of inquiries into deals. It is an indication of positive sentiment combined with low interest rates and stable pricing that is translating into business momentum. With all positive factors in place, most homebuyers have realised this is the best time to buy,” Vikas Chaturverdi, CEO, Xanadu Group that handles sales and marketing of several developers across their portfolios. “Both western and central suburbs of Mumbai are leading the sales activity.”

According to Irani, the Mumbai Metropolitan Region (MMR) posting sustainable growth for the last several months is extremely encouraging news for over 250 ancillary industries and job creation in general.

With the central bank maintaining its stance on low policy interest rates, and developers providing attractive offers, sales trajectory has been on the rise with monthly sales surpassing even pre-pandemic levels seen in 2018 and 2019.

The Mumbai property market has been buzzing with activity since the state government announced a reduction in stamp duty rates in 2020 to kickstart the realty sector and other industries linked with it.

The reduced stamp duty had led to a surge in the number of transactions across segments including luxury, mid-income and affordable housing. While the lower stamp duty benefit window period ended in 2020, the property markets across key cities of Maharashtra are still witnessing robust activity.

Source: content.magicbricks.com

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Maharashtra Government Increases FSI for Slum-rehab Projects Across State

 01 March 2022

Mumbai

The Maharashtra government has increased the Floor Space Index (FSI), or the permissible development on a plot, to four times from three across the state for slum-rehabilitation projects, in line with existing guidelines for the country’s commercial capital, Mumbai.

The state government has revised the Unified Development Control Promotion Regulations (UDCPR) for the rest of the state to give effect to this increase in the FSI.

"In late 2019, the FSI for slum-rehabilitation projects in Mumbai was increased to four times from the earlier three, and now, after over two years, the same has been made applicable to other parts of Maharashtra," said a senior state government official.

The move is expected to push projects involving slum rehabilitation in other parts of the state apart from Mumbai.

"With growing industrialisation and a population explosion, slums will continue to increase in volume and cause larger issues. The Maharashtra government has rightly identified this and its penetration beyond metro cities like Mumbai. The FSI policy to incentivise developers in other cities to come forward and take up slum redevelopment is a step in the right direction. This will be a big leap forward in housing for all and slum-free cities in Maharashtra," said Gautam Thacker, President of real estate industry body Naredco’s Progressive Neral-Karjat unit.

According to Thacker, when combined with city beautification and pride in one's place of residence, it would encourage more developers to come forward and undertake such development, as well as be a positive step toward a cleaner and safer city or town.

In a bid to strengthen and bring uniformity to real estate construction guidelines across the state, the government approved the UDCPR in December 2020. This uniform set of regulations will specify everything from the height of buildings to the width of roads and the size of amenity spaces.

The new rules are applicable to all municipal corporations, councils and nagar panchayats across the state, except Mumbai and some neighbouring areas like hill stations, eco-sensitive zones and specified corporation areas.

As per the UDPCR issued in December 2020, the density for slum rehabilitation projects to receive the FSI of three was set at 500 dwellings per 2.5 acres. This permissible density has now been increased to 650 dwellings per 2.5 acres, while increasing the FSI to four times from three.

Slum-rehabilitation authorities will have the flexibility to consider projects with an even lower density of 500 dwellings per 2.5 acres, to ensure more rehabilitation projects are undertaken and slum dwellers are accommodated in such developments.

For effective implementation of the projects, a separate authority is likely to be set up for eight metropolitan municipalities including Thane, Kalyan, Panvel, Vasai-Virar and Bhiwandi-Nizampur. Seven municipalities and councils, including Badlapur, Ambernath Alibag, Pen, Khopoli, Matheran and Karjat will also be made part of this separate authority.

Source: content.magicbricks.com

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Mumbai: MMRDA allocates Rs 2,111 crore for transport and infrastructure projects in budget 2022-2023

28 February 2022

MUMBAI: Crucial infrastructure works, including underground Metro corridor between Wadala-CSMT, an extension of Eastern Freeway till Thane, construction of coastal link road between Nariman Point-Cuffe Parade are likely to begin this year. Mumbai Metropolitan Region Development Authority (MMRDA) has sanctioned a substantial amount for these projects in Rs 18,404 crore budget for the financial year 2022-23.

MMRDA undertakes works on Metro corridors and road expansion projects, besides developing crucial infrastructure in Mumbai Metropolitan Region (MMR) that includes districts of Mumbai, Thane and Raigad.

The budget was approved in the 152nd authority meeting chaired by Urban Development minister Eknath Shinde

Metropolitan Commissioner SVR Srinivas said “We have presented budget with a deficit of Rs 7,680 crore. The expenditure proposed is Rs 18,404 crore as against the revenue estimated at Rs 10,724 crore.”

The shortfall will be met by borrowing through loans, revenue by leasing of land parcels, development charges, income from Metro projects that will be commissioned this year.

Srinivas said, "This budget mainly emphasized on implementation of public transport and vital infrastructural Projects for which Rs 2,111.30 crores have been earmarked.”

Amongst projects which will see work begin are the construction of a bridge from Nariman Point to Colaba/ Cuffe Parade, Metro Line 10 (Gaimukh to Shivaji Chowk),11 (Wadala-Thane),12 (Kalyan-Taloja), Extension of Eastern Free Way to Thane, Thane Coastal Road, Elevated Road from Anand Nagar to Kharegaon in Thane City, Kalyan Ring Road, Kopri-Patni Road, bride on Gorai Creek, Thane- Borivali Tunnel Link Road etc.

Srinivas said, “We hope to complete the tender process for these Metro corridors in six months. Metro 11 will have integration with Metro 4 (Thane-Ghatkopar-Wadala).”

The Detailed Project Report (DPR) for extension of Eastern Freeway till Thane is being prepared. MMRDA estimates that it will be able to finalise the DPRs and bids by August 2022.

The DPR for the construction of sea-bridge between Cuffe Parade and Nariman Point has been prepared and soon MMRDA will float tenders for which Rs 260 crore has been sanctioned in this budget.

MMRDA has also decided to spend Rs 210 crore this year on the 6 km long road project that will link Mumbai Trans Harbour Link Road to Mumbai-Pune Expressway from Chirle.

Srinivas said, “Allocations have also been made for concretisation of the Eastern Express Highway and Western Express Highway. We expect the work to begin by May 2022.”

Source: timesofindia.indiatimes.com

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