The Brihanmumbai Municipal Corporation (BMC), the richest civic body in the country, presented a budget of Rs 45,949.21 crore for the year 2022-23, ahead of the civic elections. The civic body announced 100 per cent relief from payment of property tax for the flats measuring up to 500 square feet of carpet area. “About 16,14,000 citizens will get 100 per cent property tax relief. The amount of exemption to citizens is to the tune of Rs 462 crore per annum,” Mumbai municipal commissioner Iqbal Singh Chahal said in his budget speech.
According to Niranjan Hiranandani, vice chairperson, (National) NAREDCO and MD, Hiranandani Group, “The MCGM Commissioner In his budget presentation has formalised what was announced by the chief minister. the move augurs well for affordable housing and is a positive for buyers of homes sized 500 sq ft or less in Mumbai. It will provide a fillip to construction of new homes in this segment. I look forward to a scenario where this can be extended to other cities in the state, as also positively consider the suggestion being made by consumer forums, about extending this to homes sized 750 sq ft.”
On January 1, chief minister Udday Thackeray had announced a decision to waive the property tax for the residential units of up to 500 square feet, located within the Mumbai municipal area limits.
Experts suggest that the Maharashtra government’s announcement on the property tax waiver in the affordable housing segment infuses a fresh lease of life for end users and prospective homebuyers and a booster to buoy the market sentiment, the likely revenue loss should be offset by incremental sales volumes in the affordable segment
Pritam Chivukula, co-founder & director, Tridhaatu Realty and treasurer, CREDAI MCHI, said: “The decision is likely to benefit the prospective homebuyers along with the developers that are focused into affordable housing. The upto 500 sqft category of homes have seen a larger demand from the first time buyers and the millennials in the last few months and this move will further help to sustain the demand. It will not only boost the affordable housing segment but will also help to keep up the growth momentum going forward.”
Bhushan Nemlekar – director, Sumit Woods Limited, said: “The move by the authorities is a welcome and a positive move for affordable housing. It will prove to be favourable for redevelopment and Slum Rehabilitation Authority projects providing homes that are 500 sq ft or less in size. It will also enhance the acceptance of smaller size homes such as 1BHKs and studio apartments giving a much needed fillip to the affordable housing segment.”
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Mumbai municipal commissioner Iqbal Singh Chahal presented the budget before the civic standing committee meeting held at the BMC headquarters. Before presenting the general budget at the standing committee, the BMC also tabled its education budget of Rs 3,370.24 crore. This year’s education budget estimates are 14.45 per cent more than the last fiscal when the budget was Rs 2945.78 crore.
