Get ready to shell out more for your dream house this year, at least in the Mumbai market. That's because the Maharashtra government has increased benchmark property rates for the year 2010 by 20%, reports CNBC-TV18’s Priyanka Ghosh.
The Maharashtra government has come out with its Ready Reckoner 2010 and it has increased prices to the tune of about 15-20% across verticals. These rates are applicable for land, residential as well as commercial properties. The Ready Reckoner gives the benchmark based on which the stamp duty and registration charges are calculated, which is basically about a 6% cost for the consumer.
Industry estimates state that Mumbai’s property rates have already increased by about 30-35% in the past 10 months, and hovering close to the 2007 highs. HDIL, Lodha Developers, Unitech, Mahindra Lifespaces are among those who have increased prices. Developers say that raw material prices have increased therefore leaving them with little choice, but to increase prices and pass it on to the consumers.
As far as Mumbai’s residential property is concerned, analysts say there may be a second property bubble in the making. It is also not good news for commercial properties. Commercial demand is unlikely to pick up as it hasn’t shown a revival in the past six months post the government’s new announcement.
Source: CNBC-TV18Courtesy moneycontrol.com
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