Mumbai has recorded sale of over 10,000 houses by January 31, leading to revenue earnings of Rs 305.11 crore through stamp duty fees for the government. Similarly, in Maharashtra about 1,52,216 sale conveyance were recorded generating a revenue of Rs 1,184.23 crore. With an aim to provide relief to homebuyers, the Maha Vikas Aghadi government has reduced stamp duty fees to three per cent from five per cent till March 31. Earlier, the concession was of two per cent till December 2020.
Reportedly, the reduction in stamp duty fees has encouraged a lot of homebuyers to go for their dream home. Apart from this, several developers are also offering zero stamp duty discount.
Also, the state government is providing 50 per cent discount on premium payments for those builders who will pay the homebuyers stamp duty charges for next year. This move of reduction in premiums will help rationalize input costs for the developers and will go a long way in expediting project completion thereby keeping price escalation in control. With new concessions and offers the realty industry is getting the much awaited push, which had dried up since the past few years due to severe cash crunch problems, believe experts related with the industry.
The industry is also expecting new launches in the market, thereby attracting investments from institutions. More tax sops and higher relief on the home loan rates will woo the homebuyers and investors to buy property, say industry experts.
“After the adverse effects of the pandemic, the real estate sector has seen steady recovery in the last quarter of 2020 backed by positive Government reforms, low interest rates and stamp duty reduction. Now, to sustain the momentum, a lot is expected from the upcoming Union Budget 2021. Revising the tax exemption limit for individuals under Section 24 from Rs 2 lakh to Rs 5 lakh will help increase the purchasing power of the homebuyers,” said Abhishek Jain, Chief Operating Officer, Satellite Developers Private Limited.