States

State’s new stamp duty rates among lowest in India

With a 3% reduction, the stamp duty rates in Maharashtra are now one of the lowest in the country, analysts said.

The three cities of New Delhi, Gurgaon and Noida have rates between 5% and 7%. While Chennai is at 7%, other cities in south India are between 5% and 8%.

“In some States, especially ones in north India, the rates are lower if the property is registered in the name of a lady. This reduction is in the range of 1%-2%. Even if we take that into account, rates in Maharashtra are now amongst the very lowest in the country,” said Bhavin Thakker, managing director, Mumbai, and head, Cross Border Tenant Advisory, Savills India.

He said a 3% reduction is a significant one and this will benefit the fence sitters. “For properties that are fully complete, there is no GST applicable as well; moreover, developers are already offering reduced prices and freebies. A combination of all these will prove to be a good offering for buyers,” he said.

Developers will also stand to gain as this will help them sell inventory and liquidate stocks that have been available for some time, he added.

Kamal Khetan, chairman and managing director, Sunteck Realty Ltd, said the reduction was a great and significant decision taken by the State government to boost the real estate sector.

“This announcement will accelerate the residential real estate demand and further improve the sales momentum. For the homebuyer, the substantial saving on the overall cost will incentivise their purchasing decision,” he said.

Manju Yagnik, vice chairperson, Nahar Group, and vice president, NAREDCO, Maharashtra, said, “A cut in stamp duty announced by the Maharashtra government will help boost demand for housing. This is the second time this year the State government has taken such a step to provide relief for homebuyers. The 3% cut combined with the 1% stamp duty cut announced earlier this year will help attract investment in the housing sector.”

She said as the fortune of the real estate sector is linked to nearly 220 allied sectors, a boost in demand for housing will help other sectors and boost the overall economy.

Stating that stamp duty cut will push festive season sales, Anuj Puri, chairman, Anarock Property Consultants, said, “Apart from the obvious homebuyer benefits, the government can generate badly-needed revenue via increased registrations after the most severe downturn in recent history. Affordable and mid-segment properties, which are in maximum demand, will see the most traction from such this move.”

“To ease inventory pile-up and cost overruns, many players have already topped off discounts with added incentives such as booking amount refunds, statutory fees waivers, cashback schemes, easy payment structuring and assorted freebies. This stamp duty rate cut can push sales further into the green during the festive season,” he said.

Farshid Cooper, MD, Spenta Corporation, said this decision though temporary provides impetus to the realty sector that has been witnessing a slump and an adverse impact of the pandemic.

“This announcement coming at the heels of the festive season will definitely help the sector improve their sales volume and velocity for the existing inventory available in the city. The buyer community is likely to go for affordable and mid-segment properties, owing to their price point and will likely to be the growth drivers for the residential real estate market,” he said.

Ram Raheja, director, S Raheja Realty, said the reduction will certainly boost sales as all those sitting on the fence will take the plunge.

“What is commendable is that they also put a timeline to it, which encourages buyers to buy sooner rather than later,” he said.


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Printable version | Jun 19, 2021 1:06:30 PM | https://www.thehindu.com/news/states/states-new-stamp-duty-rates-among-lowest-in-india/article32451173.ece

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