Mumbai real estate to get costlier with BMC surcharge on property deals

The average home prices in Mumbai have touched Rs 12,000 per sq ft

The Brihanmumbai Municipal Corporation's (BMC's) plan to levy a one per cent surcharge on the sale and purchase of properties is expected to hit the residential property market further.

The country's most expensive property market, which was going through a prolonged slowdown for the past four years, was just coming out from the impact of demonetisation.

"Property developers are already making losses and authorities think real estate is the best industry to levy all the taxes. It is a very bad sign," says Vijay Wadhwa, chairman of Wadhwa group, a prominent Mumbai developer.

Amit Bhagat, chief executive of ASK Property