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Nashik: The members of the Nashik Chapter of the Confederation of Real Estate Developers Association of India (CREDAI) want that Nashik Municipal Corporation (NMC) to reduce the property tax levied on commercial Property.
The business of leasing commercial properties in Nashik has been adversely affected due to COVID-19 and high property tax rates that have come into effect from the financial year 2018-19.
According to experts in the real estate sector, rents of commercial properties were reduced by 20% during the two years of the pandemic. Since then, there has been some improvement in the market and fares have increased by 10%. But it is still less than the pre-covid level.
Now, the main concern for owners of commercial properties is the increase in property tax which was increased from Rs 19.80 per square meter in the year 2018-19 to Rs 79.20 per square meter. Owners now find it impossible to renew contracts at current rates.
Umesh Wankhede, a senior member of CREDAI, said that the NMC has increased the commercial property tax by four times. “The owners of commercial properties had already signed agreements and there was no scope for them to increase the rent after the increase in property tax. Subsequently, the pandemic affected the realty sector as well and owners had to cut rents,” he said.
“We want the NMC to reduce the property tax on commercial properties. Though the sector is in recovery mode, the lease rate of commercial properties is still below 10% from pre-Covid levels. Increasing the fare has already proved to be futile as there are not many takers.
Meanwhile, a delegation of CREDAI Nashik Looking forward to meeting the city commissioner Chandrakant Pulkundwar to discuss the issue.
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