“FY22 would broadly be covering the lost ground of FY21, so the growth will be very minuscule and we will probably have to wait till FY23 for any meaningful recovery to happen,” said Sunil Kumar Sinha, principal economist at Ind-Ra, during a virtual conference on Wednesday.
Development premium cut likely to reduce Mumbai housing prices 7%: India Ratings
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The halving of reduction in premiums is expected to reduce the per sq ft cost of apartments by around Rs 750 in Mumbai while having a more modest reduction of Rs 150 in the rest of the state.
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Premiums per sq ft in MMR tend to be of the order of Rs 1,500 while the same typically stand at Rs 300 in the rest of Maharashtra.
MUMBAI: The Maharashtra government’s recent move to reduce all premiums related to the real estate sector by 50%, applicable till 31 December 2021, is likely to result in around 7% reduction in all-in prices in Mumbai and provide a significant boost to real estate demand, said India Ratings and Research.