Mumbai builders seek changes in rent rules amid slowdown in property markets
They are now seeking to rent out their unsold flats as 'service apartments'
May 19, 2015
Source : The Economic Times (


MUMBAI: Builders amid the struggle to sell their luxury apartments due to poor demand, have now approached the Maharashtra government seeking changes in the Leave and Licence Agreement rules in a desperate bid to clear inventories.
They are now seeking to rent out their unsold flats as 'service apartments', for those intending to take homes on rent for a short span of time, to earn some money during the current slowdown in real estate market, a state Housing department official told PTI.
However, no formal proposal has come from the builders in this regard. But, if they come up with some concrete proposal, the Housing department may consider it, he said.
"It is very difficult for a middle-income group person to buy a flat in Mumbai. There are currently five lakh luxury homes unsold in the city. When these flats are not sold, builders are unable to repay banks and other financiers their loan amount.
To get respite in the prevailing condition, builders have approached us saying they want to rent out their flats as service apartments for which they want the Leave and Licence Agreement tweaked," the official said.
The prices of unsold homes in Mumbai run into crores of rupees, forcing people to opt for homes in neighbouring areas like Thane, Navi-Mumbai and Vasai-Virar, he said.
"Thus the builders have come up with a new way to make some money now and repay their debts. For instance, if the cost of an apartment is Rs 2 crore, they will give it on a monthly rent of Rs 30,000. The builder will start a full fledged service provider agency for these apartments where all the needs of the person, who has taken the flat on rent, will be taken care of by the builder," the official said.
Services like requisite furniture, cleanliness, maintenance of the apartments, water and parking facilities will be provided by the builder to the residents, he said.
"The builders have come to us with their request. The rents from these apartments will reduce their financial burden considerably. At the same time, it will be a new option for those who want apartments for a short period of time, but do not want to pay exorbitant prices in 5-star hotels," the official said.

Latest Realty News

May 19, 2015
NAGPUR: The Nagpur Municipal Corporation general body passed the administration's new proposal to implement Rs 34,604 crore City Development Plan
May 19, 2015
Mumbai: Under the leadership of Shri Sunil Mantri, President, NAREDCO, a delegation of few key members met with Hon’ble Finance Minister Shri Arun Jaitley
May 19, 2015
SEOUL: South Korea offered to provide $10 billion for infrastructure projects in India, including smart cities and railways
May 18, 2015
NEW DELHI: Office leasing activity rebounded in the month of April
May 18, 2015
NEW DELHI: Sweden is keen on partnering with Indian companies to build 'smart cities' through the public private partnership (PPP) mode
May 18, 2015
PUNE: The Pune Municipal Corporation (PMC) will have to prove its financial worth if the city is selected as one of the participants in the smart cities programme
May 18, 2015
PUNE: The Times of India property exhibition, the Times Property Showcase-PCMC started
May 18, 2015
NEW DELHI: Realty firm HDIL is in talks to sell about 200 acres of land parcels in Baroda and Hyderabad
May 18, 2015
NEW DELHI: Housing prices have risen to record high levels, but increase in disposable income of the homebuyers has made the purchase of a house most affordable
May 16, 2015
NOIDA: Builders with housing projects in Noida Extension (renamed Greater Noida West) have let a huge sigh of relief

Latest Realty News Of State

Realty Talk's