CREDAI showed discontent over the unsupportive policies of the MH govt. by terming Mumbai real estate as “investor unfriendly.”
Bye Bye to Mumbai
CREDAI is dissatisfied with the existing Mumbai real estate conditions. This unfriendly atmosphere of Mumbai leads CREDAI to shift their investment plan to Gujarat.
CREDAI the apex real estate developers’ body plans to avoid investment in Mumbai real estate. According to them Mumbai real estate has become too unfriendly with the investors. Developers’ body pointed to the increased property tax, rise in land lease rates, etc. as reasons behind this unfriendly situation in Maharashtra.
CREDAI (Confederation of Real Estate Developers’ Association of India) pointed that the investor unfriendly policies of the Maharashtra government will keep the real estate investors away from the land. This will in turn leads to the boom of Gujarat real estate.
Mr. Lalit Kumar Jain, one of the prominent Mumbai real estate developers and the president of CREDAI, pulled out Maharashtra government for its severe policies which are really unfriendly to the investors. Mr. Jain added that these policies are totally discouraging to the investors.
Mumbai real estate was once mostly sought after by the real estate investors from within and outside. Now it is no more sought after and so left without interest. Mumbai real estate has been holding a golden time which will not come over or again, the situation shows.
Basing on the Cushman & Wakefield’s latest report he said that among the top 10 cities of higher investment Ahmedabad stands on the top with an investment of र 71,270 crore. This investment is made in the real estate and other sectors like infrastructure. Ahmedabad’s investment alone reaches up to as much as 39% of total investments by these ten top cities.
Unsupportive policies of Maharashtra government drive the investors away from Mumbai real estate. Policies of Maharashtra government have made Mumbai real estate very costly.
Through ‘Top 10 Emerging Business Destinations in India’; Cushman and Wakefield revealed a seven time increase in investment volume in these 10 cities of India. 10 selected major cities include Bhubaneswar, Kochi, Indore, Chandigarh, Vadodara, Coimbatore, Jaipur, Nagpur and Visakhapatnam, besides Ahmedabad.
Real estate has been the prime commodity and necessity for any business entrepreneur. So if the running cost is too high, one has to go for alternatives. This is what happens with Mumbai real estate. Gujarat is located in an hour flight distance away from Mumbai. This creates more demand for Gujarat real estate.
Mumbai real estate developers pointed to the high level red-tapism existing in the state. This higher kind of red-tapism has been a great bar which prevented the approval of many buildings. After a long gap of almost two years the authority is now selectively approving some of the projects.
Mumbai real estate developers suggested single window system to solve out this problem. Apparently this was not the suggestion of the builders but of some officials. Yet this system is to be implemented.
“Approval system of Gujarat is faster” revealed some reliable sources of Gujarat real estate developers. Commencement certificates (CC) is delivered hand to hand by the government. Gujarat government has a team of IAS officers to handle the issues related to investment and other financial matters. These officers run call centers for the government.
GIFT (Gujarat International Finance Tec-City) is being developed by the government under Narendra Modi. This Tec- city is a global finance hub in nearby vicinity of Ahmadabad. The project includes townships and other financial zones.
CREDAI’s Mr. Jain expressed that even Bihar and Punjab are becoming more investor- friendly. He added that Andhra, Karnataka and Jharkhand are about to launch single window clearance system. He expressed his hope in which the MH government will correct its unfriendly policies. He added that the real estate builders are ready to work shoulder to shoulder with the government.