CREDAI-MCHI advises the Maharashtra government to cut back on stamp duty
The extended restrictions caused by COVID 19 have, by large, crippled the real estate industry in India and around the world. People have been cooped up in their homes for more than one year now, many have lost their jobs, and others are simply uncertain of their future.
In addition, the lack of financial stability has significantly reduced spending power in general. It was already hard to find the right house or property within a budget before the pandemic hit. Still, now with limited income and a turbulent market, the majority of people and businesses are hesitant, stalling until things get back to normal.
But even with all these hurdles, the real estate market in India is still projected to grow at a steady pace over the next year. State governments and banks, and other organizations around India have offered to help revive the economy by providing incentives, decreased interest rates, and being lenient in general. To once again get the ball moving in the real estate space in Maharashtra, the government has been focusing on reducing stamp duty, basically cutting down on the transaction costs of a deal.
Reduction of stamp duty
For the past few months, the Maharashtra government has been lowering the stamp duty on housing in certain areas to encourage more real estate deals.
From September 1 to December 31, 2020, the stamp duty in Pune. Nagpur, Pimpri-Chinchwad, Navi Mumbai, and Thane were lowered to 3%, and in Mumbai, it was 2%. The rates were updated again; from January 1 to March 31, 2021, the stamp duty was 3%(Mumbai) and 4%.
The reduction in rates worked, and the housing sector was again back on track; however, after March 31, the government took no further action, stamp duty was back to normal, i.e., 5% in Mumbai and 6% in other areas. The return to higher rates amid the pandemic has put a bit of pressure on the buyers and killed off the momentum. As per CREDAI-MCHI, the downward trend is set to continue with numerous genuine buyers sitting on the fence due to higher transaction costs.
New Delhi, June 1, to address this issue, the CREDAI-MCHI association has sent separate letters addressed to Udhav Thackeray, the Chief Minister of Maharashtra, Ajit Pawar, the Finance Minister & Deputy Chief Minister of Maharashtra, and Balasaheb Thorat, Revenue Minister of Maharashtra, demanding the reduction of stamp duty once again to 2% and 3%.
Who are the CREDAI-MCHI?
The Confederation of Real Estate Developers’ Associations of India (CREDAI) is an all-India organization consisting of more than 3500 workers, promotors, and 18 private developers; they are primarily a private entity operating apart from the government, focusing on the growth and development of Indian real estate industry.
The Maharashtra Chamber of Housing Industry (CREDAI-MCHI) is a part of CREDAI operating in the Mumbai and MMR areas. They are headstrong with over 1800 members and are responsible for 80% of all organized residential and commercial sectors. They have grown into a large organization with branches across MMR, including Mira – Virar, Thane, Kalyan -Dombivli, Raigad, and Navi Mumbai.
The CREDAI-MCHI have a good grasp of the ups and downs of the real estate market in Mumbai; that’s why they requested the Maharashtra government to reduce stamp duty once again.
Hopefully, with the vaccines in circulation and plans underway to lift the heavy restriction, 2021 may see a rise in the economy and, for a change, end on a happy note.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
