Premium charges for small houses reduced

The Pune Municipal Corporation has announced 50% reduction in premium charges for small housing units.

Municipal commissioner Mr. Pravinsinh Pardeshi said that to promote low cost housing, we have decided to offer 50% reduction in premium charges for housing units with an area of less than 50 square meter. For units with area between fifty to eighty square meter, the concession would be around 25%. The reduction would be applicable from next month. Further he added that there are no changes in development charges.

These days, the premium charges range from 100-200 rupees per square feet, depending on the locality.

The municipal corporation has been directly and indirectly bearing the brunt of recession, Pardeshi said. “The civic body gets an annual income of 250 crore rupees from development charges and premium charges. But, for the last few months, very less construction proposals are coming for permission.” He added that the average income from development charges has dropped from twenty crore rupees per month to ten crore rupees per month.

Real estate business is suffering from recession and there is no demand for big housing units. Many projects, which are already started, are struggling to attract customers. There are no new proposals. We hope that the concession in premium charges will give a boost to construction of small housing units for customers who couldn’t afford big houses,” Pardeshi said.

Mr. Pardeshi further said that the developers who have already submitted plans could alter their proposals and propose small housing projects to get benefit of the concessions.