The Maharashtra government’s city planning body, City and Industrial Development Corporation (CIDCO), has offered an almost 50% reduction in the interest rates on delay in plot or property payments, a move that realtors say is expected to lead to a 30% increase in construction activity undertaken by MSME developers in Navi Mumbai.
Real estate developers currently have to pay 12% interest on delay in payment of installments up to three months and 16% interest on delay in payment for over three months. This has now been reduced to 8.4%. CIDCO’s decision is also expected to benefit homebuyers who may have bought properties from it.
Leading real estate industry body CREDAI MCHI has said that the move is a ‘game changer’ and is expected to increase construction work undertaken by MSME developers in Navi Mumbai by almost 30%.
CIDCO’s decision is also expected to bring about stability in housing prices for homebuyers, it said.
“CIDCO’s decision to offer 50% reduction in the interest rates on delay in plot / property payments in response to longstanding demand by Navi Mumbai and Raigad based real estate bodies is a shot in the arm for the real estate market in Navi Mumbai in these challenging times,” said Raajesh Prajapati, CMD, Prajapati Group and founder president of CREDAI MCHI Raigad Unit.
This move, which is in line with MahaRERA guidelines, will also enhance the ease of doing business and pave the way for greater economic prosperity in the region."We welcome the decision by CIDCO to reduce interest on DPC by almost 50% and hope that this will lead to greater real estate development in Navi Mumbai," said Kiran Bagad, president, CREDAI MCHI, Raigad unit.