Mumbai: Stamp duty hike report stuns realty sector

Mumbai: The real estate industry in Maharashtra is upset over certain reports of the State Government’s plan to hike stamp duty rate by 1%, especially at a time when the sales in categories other than luxury housing has become tepid and inventory level in Mumbai has touched a high of almost three years.

Responding to it, Dr Niranjan Hiranandani, Managing Director, Hiranandani Group said, “Revision of ready reckoner rates along with the hike in stamp duty charges is an indisputable sentimental dampener. This will discomfort affordable homebuyers who are already under pressure due to spiralling home loan interest rates and inflation-led rise in property prices.”

Industry representative may meet CM Shinde

The industry representatives are also contemplating to meet the government, including Chief Minister Eknath Shinde, to get a clarity on the report as well as to request against the hike in stamp duty and other reliefs.

According to industry players, there already are signs of slowdown in the developed economies and the government should support the real estate sector to tide down challenges in Mumbai and Maharashtra.

For the last six months now, the realtors are seeking reliefs from the State Government, including concession in stamp duty similar to the one rolled out during the pandemic. “If the state waives off half of stamp duty, we developers are willing to provide the balance 3% relief to the home buyers. Effectively, it will be nil stamp duty for the end consumers. This will support increasing sale momentum for the existing housing stock inventory,” Sandeep Runwal, President, NAREDCO Maharashtra and Managing Director of Runwal Group had said back in October.

During the pandemic, the Maharashtra government to revive economic activity had reduced stamp duty to 2% from September to December 2020 and 3% between January and March 2021. The same was restored to 5% from April 2021 and increased 1% a year later on account of metro cess.