Land Rates up 20% in East­ern Sub­urbs

The Economic Times - - Pure Politics - Kailash.Babar @times­

Mum­bai: Realty de­vel­op­ers in Mum­bai may have to shell out up to 20% more for land pur­chases in east­ern sub­urbs of Mum­bai given the state gov­ern­ment’s de­ci­sion to re­vise Ready Reck­oner rates, in­clud­ing land rates.

Out of to­tal 180 lo­cal­i­ties that fall un­der the Kurla zone, land rates in nearly 78 zones have been in­creased by 10% to 25%. Some of the key lo­cal­i­ties fall­ing un­der this zone in­clude Kurla, Ghatkopar, Vikhroli, Kan­jur Marg, Mu­lund, Chem­bur, Deonar, Mankhurd, Chan­di­vali, Bhandup and Turbhe.

“With rise in land cost, premium for de­fi­ciency space, fun­gi­ble FSI and for stair­cases, pas­sages and lift ar­eas will also move up­ward by the same amount and all of this will push the prop­erty prices higher. Cur­rent slug­gish mar­ket sce­nario is un­likely to sup­port any such price rise,” said Su­nit Gupta, prop­erty ap­praiser op­er­at­ing in Mum­bai.

Ac­cord­ing to prop­erty val­u­a­tion ex­perts, the per­cent­age rise in land rate is higher than the in­crease in res­i­den­tial rate in nearly 19 lo­cal­i­ties of the Kurla zone.

Ready reck­oner rates are as­sess­ments of prop­erty value by the state gov­ern­ment on the ba­sis of which stamp duty and reg­is­tra­tion charges are paid. The gov­ern­ment usu­ally re­vises these rates ev­ery year based on av­er­age of ac­tual sale value of res­i­den­tial and com­mer­cial prop­er­ties in var­i­ous zones.

How­ever, val­u­a­tion ex­perts are sur­prised as to how the land rates have been in­creased more than the rates of res­i­den­tial and com­mer­cial prop­erty in the same zone.

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