Maharashtra move to cut construction premiums to lower project costs by 17%

However, developers peg the benefit at 6 to 7 per cent after passing on stamp duty custs to buyers

Topics
Maharashtra government | Construction | Realty

Raghavendra Kamath  |  Mumbai 

Maharashtra government's decision to reduce construction premiums is expected to result in 12 to 17 per cent savings in project costs, said analsysts tracking the companies.

Currently, the various FSI premiums/fungible FSI and payments for other concessions account for between 25-33 per cent of the overall project (including land) and the waiver may result in a 12-17 per cent saving on overall project cost, said Adidev Chattopadyay, an analyst with ICICI Securities. FSI means permissible construction on a given plot of land. "While we await the fine print on the exact ...

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First Published: Thu, January 07 2021. 16:47 IST
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