The maximum limit for affordable housing in Metro cities like Mumbai is 65 lacs.
Minimum area in affordable housing is 30 mtrs i.e. approx 323 sq.ft. Thus if the price is ₹20000/- per sq.ft for 323 sq.ft, then it will get eligible for affordable house with maximum limit of 65 lacs. If we take profit of the developer as 20%, the cost or break even should come at ₹16000/- per sq.ft.
But in Suburban Mumbai on private plot, nowhere the breakeven of any redevelopment project comes at ₹16000/- per sq.ft.
The average Land Ready Reckoner Rate in Suburban Mumbai is approx ₹80000/- per sq.mtrs. The lowest Land Ready Reckoner in some places like Asalpha, Malvani, Kurar Vilage, Bhandup, Dahisar have Land RRR as ₹40,000/- per sq.mtrs. Even in such places, the building plot which falls on 9 or 12 mtrs road, as per new DCPR 2034, the breakeven in such places comes at ₹ 21000/- per sq.ft. & with profit it will be sold at ₹25000/- per sq.ft. Thus the minimum area of 323 sq.ft @ ₹25000/- per sq.ft will come to ₹80 lacs.
That means your budget is no use to metro cities like Mumbai. We will not get any benefit of GST @1%, nor we will get benefit of additional Standard Deduction on Home Loan Interest. So what is there in budget 2019 for Mumbaikars in housing...?
Every Mumbaikar needs reply to these questions:
- Is Mumbai not part of India..?
- Does Mumbaikar not buy affordable house in Mumbai..?
- Don’t Mumbaikars get any benefit of budget..?
- Only Mumbaikars only pay Tax and this taxed money be distributed to other states of India..?
This is the situation for Mumbai for 60 years since 1960. If this continues, Once its name changed from Bombay to Mumbai and that day is not far when its name will be like “ MUM😷BYE “..!!!!