There is good news for homebuyers in Maharashtra. In order to boost residential sales, the Maharashtra government now considers reducing the premium on real estate projects by at least half, following the recommendations of the Deepak Parekh Committee to reduce the stamp duty to 5 percent by December 31, 2020, Still working.
This decision of the government will reduce the expenditure on real estate projects, which will reduce the prices of real estate projects for home buyers.
Reduction in premium and cess will provide great relief to the builders. Premium refers to the many changes that are levied by the state in relation to an area or additional area for approval in a project.
These may include the premium paid for FGI (floor space index), the open premium for space, lack of premium, payment of more land premium covered for construction, lobby, lift well, and stair premium among others.
These premium charges are 30% of the total cost of the flat. According to Rajendra Sawant, chairman of Nirman Realtors, the premium fee is still very high and if there is a cut in it, the builders will get a lot of relief and the home buyers will also benefit if the cost is reduced.
Sawant said, "The Maharashtra government has given a lot of convenience by paying a premium in installments and this has increased the cash flow of the builders."
To give impetus to new projects and constructions, the state government is also considering exempting the required 12 m and 16 m road conditions in construction. The state government is also preparing to approve the construction of 9-meter roads.
The Deepak Parekh committee had also suggested the state government to cut the premium. There are 22 types of premium charges in Mumbai, while builders in Bangalore have to pay 10 premiums, 5 in Delhi, and 3 types of premium charges in Hyderabad.