Covid-19: Realty sector expects reduction in stamp duty across States

The realty sector, while welcoming Maharashtra government’s move to reduce stamp duty to give a boost to the realty sector, says other States should follow suit.

Maharashtra government has decided to temporarily reduce stamp duty on housing units from 5 per cent to 2 per cent until December 31, 2020. Stamp duty from January1, 2021, until March 31, 2021, will be 3 per cent.

Satish Magar, President, CREDAI National, said, “It has been our continuous insistence with the various state governments to reduce the stamp duty. The move by the Maharashtra government to cut stamp duty by 3 per cent will come as a significant relief to consumers who will save a substantial amount in their real estate investments.” Magar added that the amount is highly significant for the buyers of mid-segment and affordable properties.

“We hope that this will be a trendsetting move for the other states to follow, boosting consumer sentiments, driving demand and incentivising all real estate segments, especially at the pre-festive season. A nationwide cut in stamp duty will bring further relief in the national real estate segment and help over 250 allied industries,” he said.

Rohit Poddar, Managing Director, Poddar Housing and Development Ltd, said, “Announcement of the reduced stamp duty at the onset of the festive season will influence home buyers buy their dream home at more affordable prices. Homebuyers will be able to get more benefits and more registrations will take place. Residential asset is a one-time investment, and the announcement by the state government provides an opportunity to make the purchase at a significant price value, which, in turn, will provide home buyers more liquidity in hand.”

Sujay Kalele, Founder, TRU Realty, said, “Maharashtra government’s step is a big booster for the real estate industry as it lowers the cost of acquisition of property for customers. This, coupled with lower interest rates, should kick start the sales cycle for the industry.”

Rohit Gera, Managing Director, Gera Developments Pvt Ltd, welcoming Maharashtra’s move, said that it will help the struggling real estate sector tremendously. “The two-tiered reduction will help incentivise home buyers to purchase sooner rather than later,” Gera said.

Ram Raheja, Director at S Raheja Realty, said that reduction in stamp duty will certainly boost sales as consumers sitting on the fence will now take the plunge.