Brihanmumbai Municipal Corporation (BMC) Commissioner Iqbal Chahal has stated that the real estate sector in Mumbai is on the 'fast track' now, despite two years of COVID-19 pandemic, and a boost in employment in the sector is expected for the next 3 years, at least.
"Due to a 50 percent reduction in premiums charged on building proposals between March 2021 and December 2021, BMC has a windfall of nearly Rs 14,000 crores additional income in the last 11 months (due to increase in volumes wherein 2860 new construction projects got approved-most of which were non-viable with full premiums), resulting in an unprecedented jump in BMC reserves from Rs 78,000 crores to nearly Rs 93,000 crore now," Chahal said.
"A real win-win situation, where the real estate sector(backbone of mumbai) is on the fast track now, (despite last 2 years of covid pandemic), resulting in a tremendous boost in employment in this sector for the next 3 years at least," Chahal added.
The real estate sector, which raked in whopping sales in the midst of the pandemic has delivered ample revenue to the Brihanmumbai Municipal Corporation kitty. According to the BMC, till January 2022, Rs 13,543 crore had been garnered from this sector.
The income to the BMC increased from the projected Rs 2,000 crore to a revised estimate of Rs 14,750 crore. This bonanza was possible because of the 50 per cent concession on premium payments the civic body had offered developers.
Chahal had earlier said that had this concession not been offered, the BMC would have not earned anything.
