Real estate developers have urged the government of Maharashtra to extend the prevailing stamp duty rebate that expires on March 31, 2021 by a year, saying that the move had improved homebuyer sentiment and increased property registrations.
In a letter presented to Balasaheb Thorat, Revenue Minister, Maharashtra Government, CREDAI MCHI, a leading real estate body with over 1800 member developers, said that the state government must extend the prevailing stamp duty rebate by 12 months until March 31, 2022.
It said that the move had “substantially improved homebuyer sentiments and property registrations, led to higher job creation and tax collections for the state. It has created a positive cascading effect enabling the industry to take a lead in the revival of Maharashtra’s economy.”
The industry body maintained that an elongated time frame to avail the reduced stamp duty charges will ensure the sustenance of the sales momentum that has witnessed record breaking property registrations in the past six months.
“The state government has played a pivotal role in enabling the real estate industry to spearhead the revival of the economy amid the pandemic. We highly laud the revenue minister Balasaheb Thorat for his decisive and forward looking approach that has led to record breaking property registrations and overall improved homebuyer sentiments in the past six months,” said Deepak Goradia, President, CREDAI MCHI.
“In view of the same, we have requested the Maharashtra Government to grant an extension of the stamp duty rebate for another 12 months to sustain the momentum whilst continuing the positive cycle of investment given the over 250 ancillary industries dependent on the industry, leading to further job creation and overall economic revival,” he added.
Naredco has also called for the stamp duty rebate to be extended.
“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,” said Niranjan Hiranandani, national president, NAREEDCO.
“In the new normal world, post COVID-19, owning a house has gained immense significance. 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,” he said.
“The pent-up demand coupled with proactive government measures and deals by the developers fuels the homebuying sentiments in positive spirit. Considering the multiplier impact that real estate and construction has on 270-plus allied industries, it gives impetus to employment generation as well as GDP growth. This will foster revival of the sector benefiting all stakeholders in a win-win scenario” he concluded.
On August 26, the Maharashtra government had announced to cut stamp duty on housing units from 5 percent to 2 percent until 31 December, 2020. From January 1 to 31 March, 2021, the stamp duty charges were reduced to 3 percent.
On the occasion of Women’s Day, the Maharashtra government announced a 1 percent cut on stamp duty charges if the transfer of house property or registration of sale deed is in the name of a woman.
Mumbai, the financial capital of India, witnessed a rise in property registration numbers in February, thanks to stamp duty cut by the Maharashtra government.
In February 2021, properties worth Rs 11,745 crore were sold in Mumbai, up by 34 percent year-on-year, according to data shared by Propstack. The total value of properties in September stood at Rs 9,025 crore; Rs 11,640 crore in October; Rs 14,395 crore in November; Rs 34,025 crore in December 2020; Rs 10,170 crore in January, Propstack mentioned.
(Source: Moneycontrol)
