Reacting to the reported decision of the Maharashtra Cabinet to approve reduction in premiums, Niranjan Hiranandani, President Naredco, said, it was a “great bolstering move” by the state Government.
“This move will go a long way in expediting the project completion and the industry will witness new launches in the market. The industry applauds this booster dose making many projects viable and we shall adhere to the rules laid down in lieu of availing these benefits,” he said.
The Naredco chief further said the reduction in premiums for new launches will help the development at the lesser input cost and over a period of time there is possibility of lower price for new inventories that shall come into the market. “It is a move expected to meet the urgent need for economic activity and generating employment,” he said.
Mani Rangarajan, Group COO, Housing.com, Makaan.com and Proptiger.com, said, the reduction in real estate premiums by 50 per cent in Maharashtra will provide a further boost to the sector in the state. “After being hit by the pandemic, the realty market has seen an uptick in the state post stamp duty cut by Maharashtra Govt. and interest rate status quo by RBI in last four months. The reduction in premiums would help the Mumbai market as the city collected as many as 22 premiums under various heads, which is higher than other top cities”, he said.
According to Rangarajan, high premium puts a financial burden on developers leading to higher costs for the homebuyers. “In the current economic scenario, the step would ease the burden and soften the prices resulting in more sales in the coming months”, he said.