August 29th, 2024: In a significant development for the housing sector, Mr. Atul Save, Maharashtra's Minister of Housing, hinted at the possibility of further concessions in registration and stamp duty fees for real estate developers. Speaking at the inauguration of the third edition of 'The Real Estate Forum 2024' in Mumbai, Mr. Save indicated that the state government is open to the idea of additional concessions to stimulate housing sales.

"Naredco Maharashtra, representing its developer members, has requested further concessions on stamp duty and registration fees to boost housing sales. We will consider these requests as we formulate our new housing policies," said Mr. Atul Save. He highlighted that the state government had previously implemented a one-percent reduction in registration fees for women purchasing residential properties and suggested that additional measures could be introduced.

Mr. Save also urged developers to invest in building 1.25 lakh houses for mill workers in Mumbai, addressing a significant housing demand. "We have announced reduction in the cost of MHADA houses on declared price with respect to the surplus tenements received under Sections 33(5) and 33(7) only. MHADA has a stock of 2000 houses and we have received 30,000 applications," he informed. He acknowledged the high volume of applications received for MHADA houses and pledged to discuss the pricing issues for MHADA houses in Pune with the MHADA Board.

Ms. Valsa Singh Nair, Additional Chief Secretary of the Housing Department, revealed that the government is preparing to launch new policies aimed at revitalizing the housing sector. These include an amnesty scheme for stalled SRA (Slum Rehabilitation Authority) projects and a new PAP (Project Affected Persons) Policy to ensure the timely completion of redevelopment projects.

Mr. Prashant Sharma, President of NAREDCO Maharashtra, commented on the current state of the residential market. He said, "This year's theme underscores the Indian residential sector as a beacon of growth and optimism. The market has seen unprecedented expansion since the pandemic, with Mumbai and Pune leading a revival that accounted for nearly 54% of new launches last year. This surge is driven by rising incomes, economic development, demographic benefits, and supportive government policies. The Pradhan Mantri Awas Yojana, one of the world's largest housing schemes, aims to add three crore houses nationwide, while Maharashtra's major redevelopment projects, including the Dharavi Redevelopment Scheme, are pushing progress forward. Additionally, the Pradhan Mantri Awas Yojana will provide one million housing units for marginalised communities. Despite this growth, rising housing prices are creating affordability challenges. "To maintain competitiveness and attract investment, it is crucial to review and adjust government fees and limits, as current premiums are deterring developers from taking on redevelopment projects."

Representing NAREDCO Maharashtra, Dr. Niranjan Hiranandani called for the allocation of 5,000 slum redevelopment projects to the industry body. This request aims to enhance Public-Private Partnerships (PPP) and contribute to making Mumbai a slum-free city. He said, "This initiative is a significant step towards strengthening Public-Private Partnerships (PPP) and redefining the landscape of Mumbai's real estate sector. By spearheading this endeavor, NAREDCO aims to play a pivotal role in transforming Mumbai into a slum-free city, setting a benchmark for urban redevelopment and inclusive growth."

Mr. Rajan Bandelkar, Vice Chairman of NAREDCO India, addressed several key issues facing the real estate sector, including the affordability challenge due to rising redevelopment costs and the need for regulatory reassessment to foster architectural innovation. He also suggested focusing on planning new cities to address migration issues and improve living conditions.

Mr. Sandeep Runwal, Vice Chairman of NAREDCO Maharashtra, discussed the robust growth in the residential real estate market, noting a 30-40% surge in Mumbai's market and increasing demand for larger homes. He emphasized NAREDCO's commitment to enhancing Mumbai's development through strategic partnerships and improving infrastructure, medical facilities, and green spaces.

The first session Maha/Urban Revolution @2047: Government policies driving real estate had Dr. Bhushan Gagrani (IAS), Commissioner of the Brihanmumbai Municipal Corporation (BMC), highlighted the remarkable infrastructure growth in Mumbai, with nearly 300 kilometers of metro lines under development. He stressed the importance of collaborative efforts from various stakeholders to ensure sustainable progress. He stated, "We are witnessing unprecedented infrastructure growth, with Mumbai nearing 300 kilometers of metro lines-a significant achievement when compared to London's historical network. This progress is a result of concerted efforts from the BMC, MMRDA, MSRDC, and private sectors. As we continue to advance, it is vital that these developments are complemented by active citizen participation to ensure a sustainable and prosperous future for Mumbai."

Smt. Valsa Nair Singh (IAS), Additional Chief Secretary of the Housing Department, Government of Maharashtra reiterated the government's commitment to making Mumbai slum-free and improving construction technologies. "Our new slum rehabilitation authority (SRA) policy aims to make Mumbai slum-free, and we are introducing an amnesty scheme for stalled SRA projects," She added, "We are committed to enhancing sustainability and reducing construction costs in future developments. We look forward to collaborating on optimising construction technologies and approvals to ensure the success of PMAY 2.0 in Maharashtra."

The inaugural session also featured the launch of a report titled 'Mumbai Residential Market through The Lens of Time,' produced by NAREDCO and JLL, which provides valuable insights into the evolving residential market in Mumbai.