Stamp duty cut will uniformly impact all housing segments, say realtors

Property developers say the cut in stamp duty to it boost demand for residential apartments and sales.
The cut in stamp duty rates and levies in Maharashtra would uniformly impact low, mid and high income housing segments, say developers and property consultants.

The state government on Wednesday cut stamp duty rates from 5 per cent to 2 per cent in urban areas till December 31 and 3 per cent till March 31, 2021. The urban local body tax has been retained at 1 per cent. In rural areas, the rates have been cut from 4 per cent to 1 per cent till December 31 and 2 per cent till March 31, 2021.

“Indian psyche is such that people want to save irrespective of luxury and affordable homes,” said Shrikant Joshi, chief executive at L&T Realty.

“It (cut) will nudge customers who are desirous and willing to buy,” he added.

Anuj Puri, chairman at Anarock Property Consultants feels it will uniformly impact all segments.

Nitin Gupta, managing director at Macquarie Capital said the demand would come back for low and mid income housing and not necessarily premium housing.

However, property developers said overall, the step would boost demand for residential apartments and sales.

"It will hasten the demand for apartments and persuade buyers to buy homes. So far, many were postponing their buying. The government announcement will make them take decisions," said Niranjan Hiranandani, managing director of Hiranandani Communities.

Vikas Oberoi, chairman and managing director of Oberoi Realty says it's a bonanza for the buyers and there will be a huge surge in buying of property. 

"There is tremendous pent up demand. People have been waiting for something like this. Now is their chance," he added.

Jaxay Shah, chairman of Confederation of Real Estate Developers Association of India said the body had been pursuing the state governments for reduction in stamp duty since the beginning of lockdown.

"The move will benefit the customer and foster demand creation apart from 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," he added.

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