Developers with projects outside Mumbai said incentives for affordable homes announced in the budget will increase the realty market in the city. The budget has eased rules in 2010 to grant 100% tax exemption on profits from selling flat in mumbai of 300-600 sq ft carpet area as opposed to the built-up area. This may increase the size of the flats which a creator will make profits without the tax by 25-30%. In non-metro areas, limit is 600 sq ft carpet area and in metros, 300 sq ft.
Developer Manohar Shroff, former secretary of Maharashtra Chamber of Housing Industry (MCHI-Navi Mumbai), said flat purchasers with a limited budget will benefit a whole lot from the relief extended to builders.
For example, if a residence in the affordable in Mumbai was earlier coming in at, say, Rs 20 lakh, it'll now cost Rs 17-18 lakh due to the 100% tax exemption offered.
"In Mumbai, a flat with a 300 sq ft carpet area in Dahisar or Mulund used to cost in the product range of Rs 25 lakh to Rs 30 lakh. Nevertheless now the price will drop by Rs 2-3 lakh per unit as more builders will become projects in this category, and so the supplies will automatically increase, thereby reducing the expenses,' 'said secretary of Builders Association of Navi Mumbai, Haresh Chheda.
Chheda said the Budget in addition has extended the time limit to savor tax exemption for such constructions from 3 years to 5 years.
In the extended suburbs around Panvel, Kalyan, Badlapur, Ambarnath-where the carpet area limit to savor the exemption has been set at 600 sq ft-the cost of a 1BHK will further reduce as land costs are much less steep as in Greater Mumbai.
"The affordable housing sector could not need called for an improved budget. It's a series of directives that are positive, especially the infrastructure status to this sector. It's been a longstanding ask that's finally materialised", said Rajesh Krishnan, CEO of Brick Eagle. His company has affordable housing builders in Mumbai Tamil Nadu, Gujarat and Rajasthan.
He also said, "Conferring infrastructure status will make borrowing for projects easier because of longer tenures of loans and better terms. The us government has recently eased norms for registered FPIs for investment in the infra sector (subscribe to bonds issued by unlisted infra companies) that'll prove beneficial.''
Maha airports to get PPP wings
Maharashtra stands to achieve big style from the Centre's decision to public-private operate airports in smaller cities in the partnership (PPP) mode.An Airports Authority of India (AAI) official told TOI the state would get priority with this front for having the maximum number of airports in the country. The sum total number of airports and airstrips in Maharashtra--both used and unused--is a lot more than 25. Of them, AAI manages six--Mumbai, Aurangabad, Pune, Solapur, Gondia and Kolhapur. The Maharashtra Airport Development Company Limited manages a complete of eight airports, but not one of them is fully operational at the moment. Kolhapur, Solapur, Aurangabad and Amravati come under the tier-II sounding cities. Airports in these cities will probably get wings in PPP mode. TNN
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