New Delhi, August 29, 2020: The reduced stamp duty charges are good news for buyers and developers as well as the state government. With no GST applicable on them, ready-to-move-in homes are the most compelling option for homebuyers in MMR and Pune in light of the Maharashtra Government’s limited-period stamp duty cut. Both cities currently have a RTMI stock of ~ 33,500 units – MMR with ~18,500 ready units and Pune with ~15,000 units.
In the under-construction category, properties due to be completed in the next 6-7 months are the next best bet. While these are not exempt from GST, they are invariably priced 5-10% lower than their ready-to-move-in counterparts.
Another 55,750 units are expected to be completed in MMR and Pune by March 2021 – the time when reduced stamp duty rates revert to normal. Of this total supply, MMR has 32,850 under-construction units while Pune has 22,900 units.
RTM units | Units To be Completed by Dec-2020 | Units to be Completed b/w Jan-Mar 2021 | |
Pune | 15,000 | 14,900 | 8,000 |
MMR | 18,500 | 27,300 | 5,550 |
Total | 33,500 | 42,200 | 13,550 |
Source: ANAROCK Research
Budget-wise Breakup of Ready Units
Of the total 33,500 ready homes in MMR and Pune presently, nearly 44% are in the affordable category priced <INR 40 lakh, followed by 26% in the mid-segment priced between INR 40 lakh to INR 80 lakh, 19% in INR 80 lakh to INR 1.5 Cr price bracket, and the remaining 11% in the luxury segment priced > INR 1.5 Cr.
It is reasonable to assume that the government will be able to cover up for revenue lost in lower stamp duty and registration charges by ways of increased sales, which will be highest in the affordable and mid-income segments. The festive season is off to a good start with this latest announcement.
Corporate Comm India (CCI Newswire)
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