The state cabinet has approved a 50% reduction in premium rates to promote cluster redevelopment in Mumbai. The move aims to accelerate the approval process for housing projects and provide affordable homes within the city. Experts believe the reduced premium rates will encourage more developers to participate but stress the importance of timely approvals and building public confidence. The government hopes this initiative will revitalize the real estate sector and transform Mumbai's urban landscape.
In an effort to promote cluster redevelopment within the city, the state cabinet approved a significant reduction in premium rates by 50% last week. This decision, which aims to incentivize developers to undertake cluster redevelopment projects, was met with optimism by housing industry representatives and experts.
Deputy Chief Minister Devendra Fadnavis, who is also responsible for the housing portfolio, emphasized that the reduction in premium rates would be applicable for a limited period of one year. He explained that the time restriction was intended to expedite the approval process for redevelopment projects.
Fadnavis added, "This measure has been implemented to ensure that Mumbaikars can have access to affordable homes within the city and won't need to seek housing options outside. With the reduced premium rates and additional available space, residents of Mumbai will essentially be able to obtain homes practically free of cost."
Domnic Romell, the president of CREDAI-MCHI, an industry body representing the housing sector, praised the decision for discouraging fragmented development and promoting cluster redevelopment. He highlighted the numerous benefits associated with this approach, such as the creation of wider roads, improved water supply, and better drainage systems. Romell emphasized that cluster redevelopment initiatives contribute to the overall upliftment of the area's infrastructure.
Initially launched in 2009 as a part of an urban redevelopment scheme for South Mumbai, cluster redevelopment projects have now been extended to encompass the entire Mumbai metropolitan region, including Navi Mumbai and Thane. However, the progress in implementing such projects has been relatively slow, with only a limited number of developments having taken place thus far. One prominent example of successful cluster redevelopment is the Bhendi Bazaar project, which spans across 16 acres.
The state cabinet's decision to reduce premium rates for cluster redevelopment projects is expected to invigorate the real estate sector and facilitate the creation of affordable housing options within the city. By incentivizing developers and addressing financial concerns, the government hopes to see increased participation in cluster redevelopment initiatives, leading to the comprehensive transformation and modernization of Mumbai's urban landscape.
This story was first published by ET Realty
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