Here is some good news for the home buyers who are planning to buy a new home in Mumbai.
With the number of permissions have reduced to to 58 from 119 in the in the Brihanmumbai Municipal Corporation (BMC)’s new rule booklet, the budget of the builders and real estate developers will come down by 30%. As a result, the builders are now passing on the benefits to the customers by offering 20% as discount on property prices.
Before BMC’s new rule booklet, the builders have to spend an average of INR 1000 per sqft for permission. With the number of permissions reduced to 58 from 119, the cost will be decreased to INR 700 to INR 800 per sqft.
Arqam Shaikh, proprietor of ARC Associates, an architectural firm located in South Mumbai, told mid-day, “Normally the cost (on permissions) were up to INR 1,000 per sqft, however with minimised number of permissions, the expense is expected to come down by INR 700 per sqft. Besides, the biggest hurdle that a builder faces is that it takes more than 4 months to get files passed. Now, with acquiring time been reduced to 60 days, builders can save a lot of money.”
Builders claims that they no hassles in offering the benefits to the property buyers in Mumbai, provided that the officials are meticulous about the new policy.
Anand Gupta, spokesperson for Builders Association of India, said, “Getting an approval takes more than a year or two, this means the builder will certainly lose money. If they get approval within 2 months, eventually there will be significant reduction in price and we can able to offer discount up to 20% for the end-users.”
According to realty sources, this new new rule booklet by BMC is all set to flourish the Mumbai real estate, as it benefits both end-users and builders.