The Confederation of Real Estate Developer’s Association of India (CREDAI), the country’s apex body for real estate, claims that Mumbai’s real estate investors will soon turn their attention to Ahmedabad.
Ahmedabad is the fastest growing city because of its quick policy decision making, CREDAI claims. While files are lost for years due to red-tapism in Mumbai, builders in Gujarat get the commencement certificate (CC) delivered to them within a month.
Lalit Kumar Jain, president, CREDAI, said, “Developers in Gujarat do not have to run around for approvals. Gujarat has a team of IAS officers manning call centres for the government. The CM monitors everything.” The builders, says Jain, praise Gujarat Chief Minister Narendra Modi for his efficiency.
In its statement CREDAI says that though Maharashtra government officials admit to the need for a single window system of approvals, this is yet to be implemented.
Jain added, “Investors also shy away from Mumbai as it is too costly thanks to the government’s unsupportive policies such as premium on fungible FSI, restrictions on land use, increasing property tax and now the hike in land lease rates.”
Manohar Shroff, president MCHI-Navi Mumbai, said, "Firstly, land prices in Mumbai and Navi Mumbai are very high. Plus, the government takes years to clear files. A builder suffers losses in all these procedures. The tax keeps increasing and the land lease rent too has increased. It’s difficult to do business, why wouldn’t we move to Gujarat? It’s close by and policies are framed for investors.”