Realty sector players have hailed the state government's move to reduce 1% cut in stamp duty for next two years on registration documents in Mumbai Metropolitan Region and in the areas of Pune, Pimpri Chinchwad and Nagpur civic bodies. They have said the government's move will positively impact homebuyer sentiment especially during the present economic slowdown and help the revival of ailing realty sector. This effectively will result in 4 per cent Stamp Duty and 1 per cent Metro cess.
The government is expected to lose Rs 2,500 crore but hopes that the reduction in stamp duty may lead to a surge in property transactions resulting in additional revenue for the state. Government's move to provide relief in stamp duty is in line with a slew of initiatives proposed by the Maha Vikas Aghadi government to boost the real estate development in the state.
Minister of Housing Jitendra Awhad, who has been engaged in bringing new policies and removing hurdles faced by the realty sector, told FPJ, “This is a big positive for the sector. The cut in stamp duty for next two years will boost purchase of affordable homes.''
Anarock Property Consultants Chairman Anuj Puri said a 1% reduction in stamp duty in key cities in Maharashtra will definitely give some monetary relief to homebuyers particularly those seeking affordable homes. ''While it may not increase housing sales by a huge margin in other budget categories, it will definitely encourage a significant complement of fence-sitters eyeing affordable homes to take the plunge. As is, driven by the affordable segment, housing sales in 2019 in MMR saw a jump of 22% against 2018,'' he noted.
On the other hand, the National Real Estate Development Council President Niranjan Hiranandani said any cost reduction is welcome, and this move will positively impact homebuyer sentiment. ''I appreciate the concern shown by the state government to help the home buyer as also real estate Industry. The suggestion put forward by industry bodies was for a 50 per cent reduction, we view this move as a beginning. Now that the state government has identified Industry problems, they will be sympathetic and are expected to take measures to improve the situation. These moves should result in a push to sales, with an increase in numbers,'' he opined.
CREDAI-MCHI managing committee member Vikas Jain observed that the relief in stamp duty will take some burden off the home buyers as purchasing power will increase and will encourage the sales in the coming year. Savills India MD Bhavin Thakker said with interest rates gradually reduced over the last year and now with stamp duty cut, the sector can witness the wheels of sales moving in the MMR and in Pune, Pimpri Chinchwad and Nagpur municipal corporation limits.
Spenta Corporation MD Farshid Cooper said huge unsold inventory and ready to move in properties are likely to benefit from the government's announcement.
