Reduced real estate premiums to generate economic activity worth Rs 10 lakh crore in MMR: CREDAI MCHI



a bridge over a body of water with a city in the background: Reduced real estate premiums to generate economic activity worth Rs 10 lakh crore in MMR: CREDAI MCHI


© Vandana Ramnani
Reduced real estate premiums to generate economic activity worth Rs 10 lakh crore in MMR: CREDAI MCHI

Maharashtra government’s decision to reduce real estate premium by half is expected to generate economic activity worth Rs 10 lakh crore in MMR, real estate industry body Credai MCHI has said.

CREDAI MCHI also estimates that the premium reduction will help residential real estate new launches make a comeback in Q1 of 2021, to almost 100{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} of pre-Covid level (Q1, 2020). Premiums and approvals attribute to approximately 30{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} of project cost, according to CREDAI MCHI research.

The move is also expected to make housing more affordable for homebuyers in the region.

MMR witnessed over Rs 5 lakh crore worth of real estate being sold and registered in the quarter ending 2020, according to CREDAI MCHI research.

The last quarter also witnessed a growth of more than 50{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} in terms of number of units sold as compared to the corresponding quarter of 2019, signifying the increase in demand for residential properties in MMR.

“Maharashtra Government’s decision to reduce the real estate premiums by 50{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} in the state is a monumental decision for not just the real estate sector but also in

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