Realtors demand extension of stamp duty benefit

Real estate industry is asking for an extension of the stamp duty cut benefit in Maharashtra. The government of Maharashtra had cut the stamp duty charges while registering a property in the state. In August 2020, the state government had decided to slash the stamp duty on sale deed documents registered between September 1 and December 31, 2020, by 3 per cent. The relaxation was to continue with the 2 per cent cut from January 1 to March 31, 2021.

Here is what real estate experts has to say:

Mr. Abhishek Jain - Chief Operating Officer, Satellite Developers Pvt Ltd.
“We have seen a historic surge in property registrations in the city due to the reduction in stamp duty charges announced by Maharashtra Government earlier. Since then, we have witnessed a significant demand across all our projects. With the concession on stamp duty expiring on 31 March 2021, we request the government to extend the stamp duty rebate by another year until March 2022 that will lead to continued sales momentum in the industry. The further extension of stamp duty rebate will boost the sentiment for the sector which was grappling by the impact of the pandemic.''

Mr. Pritam Chivukula - Co-Founder & Director, Tridhaatu Realty and Hon. Secretary, CREDAI MCHI
"The last few days to avail the stamp duty benefit in key markets such as Mumbai, Pune and other cities in Maharashtra coupled with the reduction in home loan interest rates by leading banks for a limited period have extended the best buying opportunity for the homebuyers. We can witness a considerable rise in property registrations this month as the buyers are swooping in on good deals on the back of rock-bottom interest rates on home loans, stamp duty relaxation, offers and the availability of choices from good developers. We expect the trend to continue if the Government decides to extend the stamp duty benefit for some time."

Mr. Jayesh Rathod, Executive Director, The Guardians Real Estate Advisory 
"The government of Maharashtra introduced a temporary reduction in stamp duty charges leading to substantially reduced cost of transaction for prospective homebuyers. These measures have been very effective and highly successful in reviving the fortunes of the sector at large. We believe in the first quarter of FY22, the market will enter a phase where it will witness reduced volumes until and unless the 3% stamp duty charges are extended further. In order to ensure that the momentum continues, the affordable housing industry needs to become a point of focus for all stakeholders."

Mr. Ashok Mohanani, President - NAREDCO Maharashtra
"Due to the impact of COVID 19, the Government and the apex bodies came up with plenty of fiscal measures in the past one year to deal with the major challenge of liquidity and tide over the lockdown period. The various measures introduced by the RBI, Union Finance Minister along with both the Central and Maharashtra Government injected liquidity into the market and has already spurred the demand and revived confidence in the real estate industry. Also, the unanimous decision by NAREDCO Maharashtra to waive stamp duty completely on the sales of residential properties till December 31, 2020 added to the home buying euphoria and supported the Government’s efforts to push housing demand in the state. On behalf of the real estate fraternity, we at NAREDCO urge the State Government to extend the reduced 3% stamp duty charges for another two quarters so that home buyers continue to be encouraged and invest in their dream homes."