It looks like the property tax in Mumbai is soon going to be placed on a logical and rational basis. In all likelihood an amendment to the BMC or the Brinanmumbai Municipal Corporation Act of 1888. The amendment will see a shift of the calculation of property taxes from the current ratable value system to one that is based on the capital value of the property.
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The state government is planning to amend the development control rule 33(9), what this means is that it will allow for redevelopment of old buildings by increasing the FSI (floor space index) from the existing 2.5 to 6. With this increase, Mumbai’s skyline is bound to wear a completely new look. The government is also considering compensating the existing flat owners, by giving them flats at much feasible concessional rates and also at the same time banning the sale of flats in these redeveloped buildings for around 10 years or so.
One of the major construction groups that have recently opened shop in Chennai is the Bangalore based ‘PURAVANKARA GROUP’. The group was established way back in 1975 and has emerged as a leading group in the development of investment property in Insdia. In addition to Bangalore, the group has started real estate development in a major way in cities like Chennai, Kochi, Mysore and Hyderabad. The group is also taking up projects in Colombo and in the United Arab Emirates.
‘Sobo’ – home to the elite and the ‘burbs’ for the middle class: What is this dividing line that cuts across Bombay and marks the great north south divide? Is it just in the minds of the people? Is it the spiraling real estate prices? Is it the absence of the irritating auto rickshaws on the street? Or is it because South Bombay was ‘the Bombay’ during the grandiose days of the British raj? Whatever the answer, South Bombay has always been coveted as a property hotspot. It could boast of the best 5 star hotels, magnificent apartments with a panoramic view of the sea and the prime business centers at Nariman Point.
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The BMC is set to revise the civic property tax system in the city, in an attempt to cash in on the rising demands and the rise of willing investors. According to the National Urban Renewal Mission (NURM), civic bodies have to carry out regular reforms in the property tax structure.
Along with the rapid development in the city, the real estate investment markets too have boomed, with property transactions reaching rocketing heights. In recent years the Chennai property market has attracted huge investments from all over Tamilnadu, as well as from outside. This has also been complemented by the growth in the IT industries and BPO companies that have popularized commercial Chennai Properties. A number of housing companies have built huge residential and commercial complexes, villas and apartments in and around Chennai, thus keeping up with the ever growing demands. The increasing number of home seekers and willing investors has brought builders to focus on the availability of affordable and quality apartments.
With Mumbai getting more and more crowded and congested day by day, there was an urgent need for a new airport away from the crowd of the city. The government has finally begun realizing this need. In January this year, the state government acquired land at Navi Mumbai and bids to finish the first phase of the project by 2012. In addition to the congestion of the city, the current Chhattrapati Shivaji International Airport of Mumbai has reached its maximum capacity and cannot be expanded due to space constraints. This project didn’t materialize for several years due to objections from the Ministry of Environment and Forests.
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Mumbai seems to be on a business expansion spree. Lately, various big names have announced about their plans to diversify and branch out. Most recent among them is the Mumbai-based real estate developer Nirmal Lifestyle. Nirmal Lifestyle will be inviting leading Indian and international institutions like ICICI Venture, HDFC Realty, Goldman Sachs, Lehman Brothers and Deutsche Bank to buy a stake in its property projects.
By and large, investment property in India is facing an upward price trend and among the top metros, Chennai is being eyed by all the major as well as the minuscule realtor’s as a gold mine. There’s a very positive trend that’s seen in the real estate scenario in Chennai in the past few months.
There are many people from all over India, who come to Mumbai for work and thus need a residential investment property. But residential property can be quite pricey. In fact according to a latest research, “Mumbai recorded the second highest annual growth of 21% in residential rental”.
