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

Maharashtra Government’s decision will also lead to increase in new residential project launches in MMR and make housing affordable for homebuyers

Representative Image (Source: Unsplash)

Representative Image (Source: Unsplash)

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% of pre-Covid level (Q1, 2020). Premiums and approvals attribute to approximately 30% 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.