What are the factors due to which property prices are so high in Mumbai?


Answered on November 09, 2017
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  • There are a couple of reasons behind this. All MCGM costs, are dependent on a ready reckoner rate, that is reviewed and set by the government annually. Over the last couple of years, there have been exponential increases in the prices of the ready reckoner rates. All MCGM related costs are directly proportional to these rates and hence have gone up many times over the last couple of years. Besides this mumbai is an island city, with a very limited supply that cannot be increased by expanding the city on all sides. Also demands of the land owners is a big contributer to the pricing. All societies expect a certain extra area, hardship allowance, rent which has a significant increase in the price. Over the years, these components have only increased. This coupled with the government taxes such as stamp duty, VAT and service tax, and newly introduced GST will further increase the prices in the city.
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