The proposal by Maharashtra and Karnataka governments to reduce stamp duty coupled with ongoing discounts & freebies could help festive housing sales, especially affordable & mid-segment properties. Maharashtra & Karnataka are mulling cuts in stamp duty rates; Maharashtra is looking at a 2-3% reduction.
Currently, stamp duty charges in Mumbai & Pune is at 5%. For flat at a saleable value of approximately Rs 75 lakh in Mumbai, 2-3% cut in stamp duty will result in about Rs 1.5- lakh & Rs 2.25 lakh saving respectively. Karnataka charges 5% stamp duty for properties costing Rs 35 lakh, 3% for properties between Rs 21 lakh to Rs 35 lakh & 2% for properties up to Rs 20 lakh.
Stamp duty rates in other major states largely hover anywhere between 5-8%. But they are lower in some states if property registration is executed in the name of a woman. Delhi, UP, Rajasthan, Punjab and Haryana offer relaxation in stamp duty for women buyers.
ANAROCK in its analysis said that both a one-time waiver for first-time homebuyers and an outright cut of stamp duty charges could be a festive season gamechanger. Given that the residential industry revival will necessarily be a collaborative effort involving all stakeholders, there is anticipation that the government will provide this important nudge to what is traditionally the period of maximum traction for the housing sector.
ANAROCK Property Consultants Chairman Anuj Puri argued that apart from the obvious homebuyer benefits, the government can generate badly-needed revenue via increased registrations after the most severe downturn in recent history. Affordable and mid-segment properties, which are in maximum demand, would see the most traction from such a move.
“To ease inventory pile-up and cost overruns, many players have already topped off discounts with added incentives such as booking amount refunds, statutory fees waivers, cashback schemes, easy payment structuring and assorted freebies. A stamp duty rate cut could push sales into the green during the festive season,” he noted.