Mumbai: Realtors want reduced property stamp duty rate to be extended

Following a surge in the sale of houses recorded in the last one year due to the stamp duty cut offered by the state government, now developers want the existing offer to be extended for some more time, so that homebuyers remain encouraged. Dr. Niranjan Hiranandani, National President, NAREDCO said, "The positive impact of the concession has been very apparent in terms of uptick in sales and property registration momentum in past few months. The industry stakeholders in the state expect the extension of these booster doses in order to sustain the drive that yields more volumes of transaction. Given that the move has been a game-changer, it will further incentivise the fence sitters to convert into the actual home buyers and see more traction with augmented consumption demand.

Currently homebuyers pay three per cent stamp duty fees which was five percent earlier. The concessional stamp duty charges will remain effective only till March 31st as announced by the Mahavikas Aghadi government. The reduction in stamp duty besides other incentives was announced to revive the realty sector especially in Pandemic time.

Hiranandani added, "In the post-Covid-19 world, owning a house has gained significance in the ‘new normal’. Real estate also offers the buyer/ investor a safe and steady yield generating asset, and favourable market factors will positively impact sales across the next few months. Not just in Mumbai and the MMR but across the state, the pent-up demand coupled with proactive government measures will fuel the scenario of home seekers bringing their dream home to reality. This will foster revival of the sector benefitting all stakeholders in a win-win scenario."

Similarly another developer Chintan Sheth, Director, Ashwin Sheth Group expressed, "The real estate sector has been witnessing recovery due to timely reforms introduced by the government, amongst which stamp duty reduction has worked out positively, to regain confidence of potential homebuyers, resulting in increased sales growth. We hope the government extends the timeline so that it will further benefit the recovery of the sector."

While Ashok Mohanani, President - NAREDCO Maharashtra has urged the state government to extend the reduced three percent stamp duty charges for another two quarters so that home buyers continue to invest in their dream homes.

Meanwhile the reduction in stamp duty has resulted in monthly sales of nearly 10,000 units for Mumbai consistently. According to the stamp duty registration office records, over 11,666 houses have been sold out in Mumbai alone till March 23rd, 2021 generating revenue of Rs 490.55 crore approximately. Similarly, in state over 1,47,533 houses have been sold out and revenue made is of Rs 8,100.85 crore.

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