MUMBAI: Developers in Mumbai pay an average of Rs 54,221 per square meter as approval costs through various premiums paid to the municipal corporation and various government authorities.
In comparison, cities such as Delhi NCR, Chennai, Bengaluru, and Hyderabad levy significantly lower costs, turning real estate development in Mumbai into a formidable fiscal challenge. This staggering difference leads to Mumbai collecting 25 times more premiums than Delhi NCR, 50 times more than Hyderabad, and 47 times more than Bengaluru for residential real estate projects. These findings were released in a report (Retaining Mumbai’s Financial Status) prepared by CREDAI-MCHI, a body representing top builders. Recently, the association asked the state to reduce the premiums by 50%.
