The Maharashtra Government in order to revive the stagnant real estate which took further hit due to lockdown has decided to reduce stamp duty on flats from September. The government has reduced stamp duty from 5% to 2% from September 1 till December 31 and from January 1 till March 31, 2021 the government has reduced it to 3%. Listed below are few of the real estate doyens’ reaction to reduction in stamp duty decision:
The reduction in stamp duty is a commendable move that will improve affordability, especially for aspiring first-time home buyers. It will aid in accelerating purchase decisions, while driving demand in the affordable and mid-premium segments. This is an opportune time for intending homebuyers who have put off decision-making due to the pandemic. Allied industries also stand to benefit - Arvind Subramanian, MD & CEO, Mahindra Lifespaces
The steep reduction in stamp duty of 3% and 2% till December 2020 & March 2021 respectively, will lead to an unprecedented surge in demand for the real estate sector. This move will benefit ready-to-move-in apartments the most as OC ready projects do not attract GST and the reduction in Stamp Duty will now bring down the transaction cost for such apartments to a very negligible percentage. We had been demanding a reduction in the transaction cost since quite sometime and today, we wholeheartedly welcome it. The timing of this move could not be better as it comes at the back of a substantial reduction in the repo rates. The reduced borrowing cost, negligible transaction cost and developers willing to offer lucrative prices, creates a great opportunity for serious consumers to make a purchase - Ram Naik, Executive Director, The Guardians Real Estate Advisory
In a bid to resurrect from a continuous decline in the housing sales and revive the demand amid the worst hit Covid-19 pandemic, the Maharashtra Government's great decision to temporarily cut stamp duty on flats from 5% to 2% till December 31, 2020 and 3% following that till March 31, 2020 is a welcome decision favouring the homebuyers. My advice to all the homebuyers is they should not wait any longer to buy their dream home. It is a convenient time considering that stamp duty has been reduced, also, property prices and bank loan rates are at a low. Therefore, it is a win-win situation for both developers and homebuyers - Rajan Bandelkar, President, NAREDCO West & Convener, Housingforall.com
Reduction in stamp duty is a welcome move and will provide a temporary reprieve. However, there has been media reports of interest subvention scheme being under consideration which will be positive too. The key still remains macroeconomic factors and unless the lockdown is completely removed which the State are hesitating to do, the long term recovery cycle will continue to remain subdued. There is a limit to which technology and interface can make up for genuine interaction and confidence in the economy - Rahul Grover, CEO, SECCPL
The Government of Maharashtra's decision to reduce stamp duty is a much-needed boost for the real estate industry and will provide a respite for first-time home-buyers, fence-sitters & resale flat buyers. Moreover, we anticipate low and mid ticket sizes to move at a faster pace. With this the number of registrations will grow, thus generating significant revenue for the government - Chintan Sheth, Director, Ashwin Sheth Group.
The state Government's decision on stamp duty reduction is a welcome move and a festive gift for homebuyers. It will surely improve the sentiments and instil confidence in homebuyers. With home loan rates at a decade low, it will benefit the consumers to buy their dream home. The real estate industry is happy and thankful that the state government is taking proactive steps to review the economy and the sector - Bhushan Nemlekar, Director, Sumit Woods
