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Real Estate | August 2011

BMC head proposal may up realty prices

Mumbai municipal commissioner Subodh Kumar's proposal to charge additional premium on construction of certain sections in a building, could push up property prices in the city by 20 to 30 per cent. Consultants, however, raise doubts about the practicality of such price rise.
Kumar has put forth a proposal before the state government that the Brihanmumbai Municipal Corporation (BMC) charge a premium of 100 per cent of the ready reckoner rates on construction of lobbies, terraces and balconies compared to the 25 per cent charged earlier.

Developers, though, say, it could raise prices. "If the premium is increased, our yields will come down by 20 to 30 per cent and costs will go up. I expect prices to go up by 20 to 30 per cent if the rule is amended," said a Mumbai-based developer.

"If our costs go up, we can not absorb them. We have to pass it on to the customers. It is ridiculous," said another prominent Mumbai developer.    

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