Navi Mumbai: Developers’ body sees 1% Metro Cess on property as additional burden for home buyers

This one percent Metro cess is a transport surcharge and is intended to be used to fund transport infrastructure projects like Metro in the state. It is also expected to help service the loans taken to fund the Metro project.

Amit SrivastavaUpdated: Friday, April 01, 2022, 08:07 PM IST
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Navi Mumbai: Developers’ body sees 1% Metro Cess on property as additional burden for home buyers | File Photo

Since real estate is the primary business in Navi Mumbai, the 1 percent Metro cess on house registration will be an additional burden for home buyers, say developers from the city. As per the developers’ body. The development will work as a deterrent for many homebuyers planning to buy a home with a tight budget.

This one percent Metro cess is a transport surcharge and is intended to be used to fund transport infrastructure projects like Metro in the state. It is also expected to help service the loans taken to fund the Metro project.

Haresh Chheda, president of Builders Association of Navi Mumbai (BANM) says it may seem like just one percent, but it amounts to a substantial amount. “Now, a one BHK flat in a good or premium project starts at Rs 1 crore in Navi Mumbai. Earlier, home buyers used to pay Rs 6 lakh for registration, now they will have to pay Rs 7 lakh,” said Chheda. He added that the majority of home buyers stretch their budget to fulfil their dream to have a house. “At that point, even Rs 1 lakh is a big amount to manage,” said Chheda.

Several developers had put on hold to launch their new projects due to Covid. Now, with Covid cases are under control and all restrictions have been lifted, developers from the city are eying a good business.

Meanwhile, city developers do not see much impact on the sale ahead of Gudi Padwa. “The decision of buying and registration of new houses were already done before March 31,” said Chheda.

Even city developers do not see a major impact on the sales due to the rise in the ready reckoner rate as property price is much higher than the circle rate. “Since there is always a good demand for property in Navi Mumbai, properties are always sold on premium,” added Chheda.

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