Property Developers Cheer State’s Stamp Duty Reduction
Real estate developers had been asking for a reduction in stamp duty following the lockdown to encourage homebuyers to purchase properties during the pandemic. "Credai had been pursuing the state governments for a reduction in stamp duty since the beginning of the lockdown. The move will benefit the customer and foster demand creation along with giving a stimulus to the allied industries coupled with employment generation. Whenever there has been a reduction in the stamp duty in the past, it has only lead to an increase in revenue in the government treasury, said Jaxay Shah, Chairman, CREDAI National. Speaking on the matter, Niranjan Hiranandani, National President, Naredco said, "This will certainly stimulate the housing demand and help in converting inquiries into the sales closures. The fiscal advantage should nudge fence-sitters to convert into the actual home buyers with rippling effect on economic growth." adding that With many other favourable market conditions, this announcement shall rekindle ailing real-estate sector and see volumes in transactions. "If the central government can slash GST rates in an upcoming council meeting would act as a shot in the arm". Rohit Gera, Managing Director, Gera Developments Pvt Ltd shared, "The proactive move by the Government of Maharashtra to reduce stamp duty is most welcome. This will help the struggling real estate sector tremendously. The 2 tiered reduction will help incentivise home buyers to purchase sooner rather than later''. Manju Yagnik, Vice Chairperson, Nahar Group and Vice President NAREDCO (Maharashtra) said, “This is the second time this year the state government has taken such a step to provide relief for homebuyers. The 3% cut combined with the 1% stamp duty cut announced earlier in the year will help attract investment in the housing sector. As the fortune of the real estate sector is linked to nearly 220 allied sectors, a boost in demand for housing will help other sectors and boost the overall economy.” “Maharashtra Government’s decision to reduce the stamp duty from 5% to 2% till December 31 augurs well for the revival of MMR realty and is a much-needed boost to the ailing sector amid the pandemic. The reduced cost of the stamp duty is bound to encourage first-time homebuyers, fence-sitters as well as resale flat buyers to invest in real estate,” said Nayan Shah, president, Credai-MCHI. “This is a proactive measure taken by the government and was most needed. It will provide buyers an incentive to buy homes, give them the option to take a decision to buy,” Satish Magar, national president of the Confederation of Real Estate Developers' Associations of India. “We thank the Government of Maharashtra for acknowledging the slowdown in the overall economy and reducing the stamp duty rates to stir up demand for homes. This will immensely benefit homebuyers as well as boost the real estate sector,” said Shailesh Puranik, Managing Director, Puranik Builders. Sharad Mittal, CEO, Motilal Oswal Real Estate Fund stated, “Reduction in stamp duty is a positive move by the Maharashtra government and demonstrates its intention to boost the real estate sector. This will provide a thrust in demand for new homes as customers garner more confidence in the sector.” Rajan Bandelkar, President, NAREDCO West & Convener, Housingforall.com was of the view that in a bid to resurrect from a continuous decline, the Maharashtra Government's great decision to temporarily cut stamp duty on flats from 5% to 2% till December 31, 2020 and 3% following that till March 31, 2020 is a welcome decision favouring the homebuyers. “My advice to all the homebuyers is they should not wait any longer to buy their dream home. It is a convenient time considering that stamp duty has been reduced, also, property prices and bank loan rates are at a low. Therefore, it is a win-win situation for both developers and homebuyers.''
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