If you are planning to buy a property in Mumbai or Navi Mumbai, you should be aware of the Mumbai Property tax rates and rules that apply to different areas and types of properties. Property tax is a levy imposed by the municipal corporation on the owners of properties within its jurisdiction. It is one of the main sources of revenue for the municipal corporation and helps in providing civic amenities and infrastructure to the citizens.
The Mumbai Property tax rates and rules vary depending on the location, size, age, usage, and construction type of the property. In this blog post, we will compare and contrast the property tax rates and rules for Mumbai and Navi Mumbai, and also give you an overview of the current property market trends in these two cities.
Table of Contents
Mumbai Property Tax
Mumbai is divided into 24 administrative wards each with its own property tax rate. The property tax rate is calculated based on the capital value of the property, which is determined by the Ready Reckoner Rate (RRR) published by the Maharashtra government every year. The RRR is the market value of the property per square meter, based on factors such as location, type, age, floor, amenities, etc.
The property tax rate is a percentage of the capital value, which varies depending on the usage and construction type of the property. For residential properties, the property tax rate ranges from 0.1% to 0.6%, while for commercial properties, it ranges from 1% to 2.5%. For industrial properties, it ranges from 0.5% to 1%. There are also some exemptions and rebates available for certain categories of properties, such as heritage buildings, slum rehabilitation projects, educational institutions, etc.
The property tax is payable annually or half-yearly, depending on the choice of the owner. The owner can pay the property tax online or offline through various modes such as net banking, credit/debit cards, cheque/demand draft, cash, etc. The owner can also avail a discount of 2% if he/she pays the property tax before the due date.
Navi Mumbai Property Tax
Navi Mumbai is a planned city developed by the City and Industrial Development Corporation (CIDCO) in collaboration with the Navi Mumbai Municipal Corporation (NMMC). Navi Mumbai is divided into eight nodes or zones, each with its own property tax rate. The property tax rate is calculated based on the annual letting value (ALV) of the property, which is determined by multiplying the carpet area of the property with the standard rent per square meter for that zone.
The standard rent per square meter for each zone is fixed by CIDCO every year, based on factors such as location, type, age, floor, amenities, etc. The standard rent per square meter ranges from Rs. 40 to Rs. 200 for residential properties, and from Rs. 80 to Rs. 400 for commercial properties.
The property tax rate is a percentage of the ALV, which varies depending on the usage and construction type of the property. For residential properties, the property tax rate ranges from 0.5% to 1%, while for commercial properties, it ranges from 2% to 4%. For industrial properties, it ranges from 1% to 2%. There are also some exemptions and rebates available for certain categories of properties, such as affordable housing projects, green buildings, senior citizens, etc.
The property tax is payable annually or half-yearly, depending on the choice of the owner. The owner can pay the property tax online or offline through various modes such as net banking,
credit/debit cards, cheque/demand draft, cash, etc. The owner can also avail a discount of 4% if he/she pays the property tax before the due date.
Mumbai Property Rates
Mumbai is one of the most expensive real estate markets in India and in the world. The average price of a residential property in Mumbai is Rs. 18,591 per square foot as of September 2021,
according to Magicbricks.com. The price varies depending on factors such as location,
type, size, floor view, etc.
Some of the most sought-after locations for residential properties in Mumbai are South Mumbai (Colaba,Cuffe Parade,Malabar Hill,Peddar Road, Worli), Bandra-Kurla Complex (BKC), Andheri West, Juhu, Versova, Powai, Thane etc. Some of these locations have seen a price appreciation of more than 10% in the last year, due to factors such as high demand, luxury amenities, reputed developers etc.
Some of the upcoming locations for residential properties in Mumbai are Navi Mumbai,Airoli,Ghansoli,Kharghar,Panvel,Dombivli,Kalyan etc. These locations offer affordable housing options with good connectivity, infrastructure, and social amenities. Some of these locations have seen a price appreciation of more than 20% in the last year, due to factors such as new projects, metro rail, airport etc.
Navi Mumbai Property Rates
Navi Mumbai is one of the fastest-growing real estate markets in India. The average price of a residential property in Navi Mumbai is Rs. 7,056 per square foot as of September 2021, according to Magicbricks.com. The price varies depending on factors such as location,type, size, floor,view etc.
Some of the most sought-after locations for residential properties in Navi Mumbai are Kharghar,Vashi,Nerul,Belapur,Airoli,Ghansoli etc. Some of these locations have seen a price appreciation of more than 15% in the last year,due to factors such as high demand,luxury amenities,reputed developers etc.
Some of the upcoming locations for residential properties in Navi Mumbai are Panvel, Ulwe,Kamothe,Karanjade,Taloja,Dronagiri etc. These locations offer affordable housing options with good connectivity,infrastructure,and social amenities. Some of these locations have seen a price appreciation of more than 25% in the last year,due to factors such as new projects,metro rail,airport etc.
Also check: Vastu Krupa Estate Mortgage Calculator – Your Ultimate
Conclusion
Mumbai and Navi Mumbai are two of the most dynamic and attractive real estate markets in India. Both cities offer a range of options for property buyers,depending on their budget,preference,and lifestyle. However,before buying a property in either city,one should be aware of the property tax rates and rules that apply to different areas and types of properties. This will help in making an informed decision and avoiding any legal or financial hassles in the future.
How can I check my property tax in Mumbai?
Online: Visit the MCGM website (https://www.mcgm.gov.in/) and enter your own home account wide variety and captcha code.
Offline: Visit the closest MCGM ward office with a copy of your private home tax invoice, your house account quantity, and identification evidence.
What is the additional property tax on a Mumbai flat?
An additional property tax surcharge is applied to the regular property tax in Mumbai. Surcharge rates vary based on property type:
Residential: 10%
Commercial: 20%
Industrial: 25%
Other charges may include water tax, development tax, and education cess.
What is the future of property rates in Mumbai?
The outlook for property rates in Mumbai is positive, with continued growth expected in the coming years. This growth is driven by factors such as rising demand, limited supply, improving infrastructure, and a strong economy. However, there are also risks to the outlook, including economic slowdown, interest rate hikes, and oversupply. Overall, the future of property rates in Mumbai is positive, but investors and homebuyers should be aware of the risks involved. Specific forecasts for property rates in the near future suggest a 2-5% increase in residential property prices.
