Cut in stamp duty will boost purchase of affordable homes
Real estate experts welcome the move, saying it would provide relief to homebuyers looking for affordable properties.
‘Cut in stamp duty will boost purchase of affordable homes’, says Jitendra Awhad after MVA reduces 1% cut in stamp duty for the next 2 years
The Maharashtra government on March 6 announced that it is reducing stamp duty on properties by 1% for Mumbai, MMRDA Region and Pune for a period of two years.
The Karnataka government, in its recent Budget, tabled earlier this week, also reduced stamp duty charges for all affordable homes priced within Rs 20 lakh to 2 percent from 5 percent from April 1.
Tabling the first Budget of the Maha Vikas Aghadi government, which completed 100 days in office on March 6, Deputy Chief MinisterAjit Pawar, who also holds the finance portfolio, announced tax concession proposal.
Presenting a Rs 9,511 crore deficit budget for 2020-2021, Maharashtra Deputy Chief Minister Ajit Pawar on Friday hiked VAT on petrol/diesel by Re 1 per liter to mop up additional revenue of Rs 1,800 crore for the cash-starved state coffers.
Presenting the maiden budget of the Shiv Sena-Nationalist Congress Party-Congress Maha Vikas Aghadi government as it completed 100 days in office, Pawar, who holds the Finance portfolio, said that the additional amount would go towards creation of a special ‘Green Fund’ which would be used for environmental conservation and projects of sewage disposal, and waste management.
According to data shared by Anarock, housing sales in 2019 in MMR saw a jump of 22% against 2018.
“A 1% reduction of the stamp duty in key cities of Maharashtra will definitely give some monetary relief to homebuyers, particularly those seeking affordable properties. While it may not increase housing sales by a huge margin in other budget categories, it will definitely encourage a significant complement of fence-sitters eyeing affordable homes to take the plunge,” said Anuj Puri, Chairman – ANAROCK Property Consultants.
Planning to buy a new home in Mumbai in the next two years? There’s some good news.
The cost of buying that dream home just went down. At a time when the country’s costliest real estate market the Mumbai Metropolitan Region (MMR) is grappling with a surplus of unsold homes, the Maharashtra government on Friday announced a 1 percent cut in stamp duty for property transactions in the region for the next two years. Besides Mumbai, the concession was also extended to documents registered in Pune, Pimpri Chinchwad, and Nagpur Metropolitan Areas.
With the economic slowdown eroding wealth and impacting buying sentiment across classes, India’s real estate sector has been the worst hit. At last count, the unsold inventory in MMR region alone was 2.24 lakh units, with nearly 60 percent of it being in the affordable and the middle segment of units prices less than Rs 80 lakh.