Lease on plots in Mumbai expired long back, still fetches revenue
The 40% of government leases of the plots in Mumbai have expired long back, some as far back as the 1950s. Of the 1,282 plots leased, the lease of 532 plots had expired and the government has not bothered to renew it.
51.66 lakh sq mt of leased land situated in South Mumbai is fetching the government a mere Rs 48.82 crore. The data was out after an RTI query was filed with the city collector.
There are 48 other plots in Mumbai apart from these 40% of expired leases for which there is no mention of when the lease deed was signed nor the number of years for which it was leased out. In the case of 55 plots, the lease period is not mentioned while three plots do not mention the date of signing the deed.
Among the plots, Mumbai Port Trust is among the lessees whose lease period is not mentioned for the 76,101 sq mt of land given in 1935. Adarsh Co-Operative Housing Society stands on another plot, in which the date of signing and the period of lease is not mentioned.
However, these plots earn a revenue of Rs 18.5 crore annually for about 9,000 sq mt of land.
On the other side, in case of developing on plots, developers from small cities are eying on the real estate sector of Mumbai. Mumbai real estate has been rising in recent times, though it is known as one of the toughest property markets owing to difficult building regulations, shortage of land and high prices.
Builders from Kolkata, Pune and Bangalore are entering into Mumbai real estate thinking that they can also gain high profit margins if the state government clarifies the development control regulations (DCR) for Mumbai.
As per research agency Liases Foras, around 10.30 million sq ft of sales was seen in the Mumbai Metropolitan Region (MMR) in the December quarter at an average price of Rs 11295 a sq ft. Mumbai’s real estate inventory, or unsold stock, is high at 144 million sq ft, second only to the National Capital Region’s 283 million sq ft.
Related Real Estate News:
Real Estate in Mumbai lures developers from other cities
Unsold properties in Pune give options to buyers
81% of properties in Mumbai remain unaffected from property tax hike
Adarsh Co-Operative Housing Society, Lease, Leased properties, Mumbai, Mumbai Metropolitan Region, Mumbai real estate, Plots in Mumbai, Properties in Mumbai, Real estate in Mumbai, South Mumbai
