Budget 2013 brings changes in prices of property in Mumbai

The announcement of the 2013 budget has been long awaited and has indeed brought about significant changes in the Indian market, deciding how much you shell out with the purchase of products and services, property included. With the new budget, property in Mumbai could turn a little more expensive, particularly in areas centered in the suburbs down south. As per the new budget, buyers of property in Mumbai who purchase more than 2,000 sq ft or real estate above Rs. 1 crore will now have to pay marginally extra! Service tax on property as such has increased from 3% to 3.6%, owing to the reduction in abetment from 75% to 70%.

But all’s not bleak with the dawn of the new budget. Those looking to purchase affordable property in Mumbai can now do so at lower costs, thanks to the additional benefit of Rs. 1 Lakh on home loans up to Rs. 25 Lakh for first time property buyers however, this is applicable only to individuals who seek to buy a home below the Rs. 40 Lakh. “This would mostly be helpful for people who want to buy a house in smaller cities or distant suburbs where the ticket size is lower,” says Niranjan Hiranandani, chairman of the Hiranandani Group.

Prospective buyers of property in Mumbai have awaited the new budget and those looking for affordable housing options have indeed benefited from the same. People planning to buy property at the expensive end of the scale will have to pay more, but this sum isn’t too large, compared to the price being paid for the property. “This would not make much of a difference for an individual shelling out Rs1 crore for a flat,” says Pranay Vakil, chairman of Praron Consultancy.

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