Your Redevelopment project will be unviable after 31st December 2021..???
Where is MCGM / MHADA FSI generated..?
Where is Fungible FSI produced..?
Where is Staircase/ Lift premium manufactured..?
Where is crop such as Open Space Deficiency Premium grown..?
Do you know Premiums for FSI from MCGM / MHADA & Fungible FSI have increased from 21st August 2021 ?
Do you know that 4% Development Cess is applicable from 21st August 2021 and hence the cost is increased.
Do you know that 50% discount on premiums such as MCGM / MHADA FSI, Fungible FSI, Staircase & Lift Area Premium, Open Space Deficiency area premium will not be applicable..?
Do you know Post Covid already cost of construction has increased by 30% approx due to increase in cost of labour, Steel, cement, tiles, fitting items..?
There is demand in homes but at reasonable price and today’s buyer is looking for good quality homes and with lifestyle external amenities.
Hence in nutshell, the increased costs may not attract the buyers and thus we may once again face such a situation where the developers will not find redevelopment projects viable in Suburb Mumbai.
As Project Consultant Management Company, when we prepare Feasibility Report as per premiums costs post 1st January 2022, we are finding redevelopment projects unviable on following parameters:
- projects having residential rates less than 30,000/- per sq.ft
- private society plot abutting less than 18 mtrs road.
- no over consumption of FSI on the plot.
Thus societies who have missed this time will have to wait for market to revive or Govt to extend the date for discounts on premiums.
Overall the problem of unviable project is due to premiums charged by MCGM.
MCGM always cry that they don’t have funds and give excuses that it is not affordable for them to reduce the premium.
It is not understood that how these premiums are calculated by MCGM that it is not affordable for them, if they reduce premium.
All FSI premium charged are not produced anywhere but they are charged which is actually “AIR”.
MCGM / MHADA charges premium on the ready Reckoner rate assuming that developer or society will earn more and they will leave behind.
But this is not the current situation. Our country is just reviving from pandemic and becoming stable but MCGM wants to handicap the redevelopment real estate sector again.
Post pandemic, thanks to state Govt to reduce stamp duty & Central Govt to reduce home loan rates, the sales picked up.
Thereafter due to 50% discounts on premiums, many developers grabbed the opportunity and launched their projects, so many of dilapidated buildings will get redeveloped homes successfully.
If not viable, what will be fate of dilapidated buildings which are beyond repairs post 31st December..?
Think Mumbaikars Think..!!
Think Mumbaikars Think..!!!
Nayan Dedhia
Managing Director
Toughcons Nirman Pvt Ltd.