Reduction in stamp duty by 3% in Maharashtra, chances to boost housing demand
The Maharashtra government reduced stamp duty charges by 3% on housing. This can turn out to be a great opportunity for homebuyers.
From 1st September 2020 Maharashtra government will be reducing stamp duty on properties by 3% until 31st December 2020. A move aimed at assisting an ailing real estate market that has been hit hard by the coronavirus outbreak. From January 1st, 2021, to March 31, 2021, the reduction in SDR will be 2%.
Opportunity for homebuyers
In Maharashtra, stamp duty charges previously were 5% for cities like Mumbai, Pune, Nagpur and Nashik, which has now reduced to 2% to help stabilize the real estate market hit by pandemic situation. The rates in other major states are comparatively lower and even lesser if the property is bought in the name of a woman.
For instance, for a Rs. 1 crore apartment, a purchaser now pays a stamp duty of Rs. 5 lakh. Charged at 2%, it will come down to around Rs. 2 lakhs that means a saving of Rs. 3 lakhs. With economic growth expected to be under pressure in the short term, this move will bring some relief to homebuyers.
Stamp Duty Charges in cities
At first low prices, then home loan rates at their lowest, later credit-linked subsidy schemes, sops by developers, and now reduced stamp duty. We all know that homebuyers never have it so good.
Some experts say, “Lower stamp duty may motivate fence-sitters, but won’t be enough to push demand as homebuyers were facing issues such as job insecurity in an uncertain economic climate.”
The realty 2020 has seen a notable decline in the first half of this calendar year in residential property sales across the major cities, while launches ceased temporarily on the miserable economic environment and muffled consumer sentiment.
This proactive measure taken by the Maharashtra government was much needed. This will provide homebuyers an incentive and encourage them to buy. The reduced cost of the stamp duty will boost to the ailing sector amid the pandemic. In the end, a 2-3% reduction in rates will result in significant savings for homebuyers.
