by THO
With Maharashtra assembly elections 2024 results expected to be announced today, homebuyers in Mumbai, the costliest real estate market in the country, hope that the government will focus on middle income housing, improve infrastructure and take steps to ensure that stalled projects are revived.
Mumbai’s real estate market is the only city in India where the per sq ft rate price for residential properties starts from ₹20,000 per sq ft and goes all the way up to ₹1.50 lakh per sq ft and more. The city is also infamous for being the most expensive real estate market in the country where home sizes can start at 200 sq ft.
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1. Reduce stamp duty and rationalise GST
Homebuyers aspiring to buy a house in Mumbai want the government to reduce the number of taxes that are levied on a property. Homebuyers have to pay taxes in the form of stamp duty, registration fees and GST, if the project is under construction.
Homebuyers feel that the stamp duty should be brought down to make homes affordable in the city and that the GST levy should be rationalized. “I think there is scope for the government to bring down stamp duty from six percent to three percent so that it saves costs. Also, why should GST be levied on an under construction apartment,” asks a South Mumbai resident Owais Mirza.
The stamp duty slab differs from city to city between 5% to 7% in Maharashtra. The registration charges for property purchase is one percent for properties up to ₹30 lakh or ₹30,000 for properties above ₹30 lakh.
2. Increase the number of MHADA housing units to meet demand
The Maharashtra Housing and Area Development Authority (MHADA) is the nodal agency that develops and sells affordable housing units in Maharashtra. It is also the nodal agency for implementing Pradhan Mantri Aawas Yojana (PMAY), the housing scheme floated by the Central government, in Maharashtra.
“More than 2 lakh applications have been received for the MHADA housing draw conducted in the state since the last two years. The authority has been able to offer only about 6,000 homes to aspiring homebuyers in Mumbai, which is the financial capital of India. This reflects a sad state of affairs, especially for those who are looking to purchase homes in the budget of ₹30 lakh to ₹50 lakh. Homebuyers with a ₹1 crore budget will still be able to purchase a flat from a private developer but what about others,” asks Vishnu Parab, a resident from Central Mumbai who aspires to buy a house in Mumbai.
The MHADA is one of the biggest land lords among government agencies in Mumbai where it has constructed several buildings on land taken on lease for 30 years. The authority plans to create a housing stock of 50,000 affordable homes in Mumbai city over the next five years and sell these affordable homes in an annual lottery.
3. Better infrastructure
According to homebuyers, the state of roads, footpaths and traffic management in Mumbai requires improvement and does not justify the real estate prices prevailing in the real estate market. They said much needs to be done to overcome the problem of water logging and flooding every year during monsoon months.
Pune resident Zeeshan Shaikh, who is scouting for a house in North Pune said, “My office has its headquarters in Mumbai’s Bandra Kurla Complex (BKC). The condition of roads and the traffic situation has gone from bad to worse in Mumbai.”
“It is due to this reason that I would prefer to live in Pune or some other tier-2 city where the quality of life is much better. The cost of living and quality of life is much better in Pune now.”
4. Faster resolution of complaints filed before MahaRERA
Homebuyers said that hearings take a long time to commence after complaints are filed before the Maharashtra Real Estate Regulatory Authority (MahaRERA) that regulates the real estate sector in the state.
“We are a bunch of homebuyers who have filed complaints for delayed possession against a real estate developer. The complaints were filed in 2021 and 2022 for which we are getting our hearings and orders passed in 2024. This is a two or three-year-long process. Homebuyers have invested their savings in purchasing their homes. The new government should take steps to ensure that complaints are heard faster,” a homebuyer from Thane not wishing to be named said.
“Maharashtra government needs to appoint more members to hear complaints to avoid delays. Chairperson/members in MahaRERA and MREAT must be appointed in a timely manner. The process for appointment should start well before it is time for the current members to retire,” said Trupti Daphtary, a Mumbai-based advocate and solicitor.
5. Revive stalled projects and stuck redevelopment of old buildings in Mumbai
Several projects in Mumbai are facing delays and around 10,000 old buildings in Mumbai are in need of redevelopment.
Homebuyers hope that the new government will take steps to ensure that stalled projects are revived and redevelopment of old buildings takes place.
Almost 2000 under construction housing projects totalling over 5 lakh units across 44 cities have been stalled on account of financial mismanagement by real estate developers and lack of execution capabilities, an analysis by data analytic firm PropEquity has shown.
Greater Noida, among tier I cities, saw the highest proportion of stalled units at 17% (74,645 units in 167 projects), followed by Thane and Gurugram with 13% (57,520 units in 186 projects) and 12% (52,509 units in 158 projects) respectively.
Also Read: Almost 5 lakh housing units stalled across 44 cities, Greater Noida tops the list: PropEquity
Mumbai has the maximum number of 234 stalled projects having 37,883 units followed by Bengaluru with 225 projects comprising 39,908 units and Thane with 186 projects, the analysis showed.
