State governments like Maharashtra, Madhya Pradesh and Karnataka reduced stamp duty to provide relief to home buyers and also to give a boost to the real estate industry that was hit by COVID-19. This is a good enough reason to buy a home in these states. In addition, now with lenders/banks offering special offers for home loans, the cost of owning a home goes down further. However, these offers are only valid till March 31, 2021.
While other states have not given a timeframe for reduced stamp duty, the Maharashtra government has. On August 26, the Maharashtra government decided to temporarily reduce stamp duty on housing units from 5 per cent to 2 per cent until December 31, 2020. However, the government revised it from January 1, 2021, until March 31, 2021, is 3 per cent. Now, it is more likely to return to 5 per cent after March 2021.
Ashok Mohanani, President, NAREDCO Maharashtra said, "With the last few days left to avail the stamp duty benefit, there is a stiff competition amongst the financial institutions to provide the consumers with the best home loan interest rates. This is the best time to buy a home as it gives aspiring homebuyers a lifetime opportunity to purchase their dream home with reduced stamp duty as well as all-time low-interest rates. These factors are also proving to help spur the real estate demand that was temporarily hit as a result of the pandemic."
While State Bank of India (SBI) offers home loan interest rates as low as 6.70 per cent for loans up to Rs 75 lakh and 6.75 per cent for loans in the range of Rs 75 lakh to Rs 5 crore, Kotak Mahindra is offering home loans for 6.65 per cent. Meanwhile, ICICI bank offers loans at 6.7 per cent and 6.75 per cent for loans up to Rs 75 lakh and above Rs 75 lakh respectively and is only valid till March 31. The revised interest rate is the lowest in 10 years by the bank. HDFC home loan customers can avail of a loan at 6.75 per cent, irrespective of the amount.
Jayesh Rathod, Executive Director, The Guardians Real Estate Advisory, said, "The reduction in home loan rates by leading banks is going to help the demand side immensely. Currently, the all-time low, sub-7 per cent interest rates are encouraging consumers to proceed with their purchase and quickly close their transactions.”
Banks like SBI, Kotak Mahindra and ICICI Bank are offering these slashed rates for a limited period.
Pritam Chivukula, Secretary, CREDAI-MCHI said, “The reduction in home loan interest rates by leading banks for a limited period has extended the best buying opportunity for the homebuyers. The banks are competing to grab the home loan customers before the fiscal year ends. Currently, the home loan rates are at a historic 15-year low, as banks compete in a market with low credit demand.”
Chivukula stated for the next few days, the buyers can swoop in on good deals on the back of rock-bottom interest rates on home loans, stamp duty relaxation, offers and the availability of choices from good developers.
As per data shared by Propstack, in February 2021, properties worth Rs 11,745 crore were sold in Mumbai alone. The total value of properties in September 2020 stood at Rs 9,025 crore, Rs 11,640 crore in October 2020, Rs 14,395 crore in November 2020, Rs 34,025 crore in December 2020, and Rs 10,170 crore in January 2021.
