Views by real estate experts and developers on Stamp Duty reduction in Maharashtra

New Delhi, August 29, 2020:

Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and PropTiger.com

The lowering of stamp duty by the Maharashtra Government is a welcome step. The move will reduce the overall cost for buyers and hence, would encourage sales. The low interest regime coupled with stable prices are also likely to increase demand in the coming future. We hope that other states will adopt a similar strategy as it will boost demand for homes and help in the revival of the economy.

The other notable benefit of lowering duty is that it increases compliance and hence, may positively impact exchequers revenue.

Also, in many of the cities across the country, the prevailing circle rate is not in sync with ground realities and hence, there is a case to reduce circle rate in such cities and areas especially where the gulf is larger. 

Manoj Gaur, MD, Gaurs Group & Chairman, Affordable Housing Committee, CREDAI (National)

The fiscal advantage extended by the Maharashtra government will make many fence-sitters to take a decision on buying the home of their choice. Lower interest rate and stable prices may also work in their favour. We expect other states to follow the path, which would boost sales of the properties and help the sector recover faster. As such, it would also help in revival of economy and employment generation. 

Uddhav Poddar, MD, Bhumika Group and Co-Chairman, ASSOCHAM National Council on Ease of Doing Business and Economic Affairs

Stamp duty reduction for a short period of 6 to 12 months is a substantial incentive for a homebuyer. It will help in the sale; cash flow will increase as people who have bought property are not making the last payment and this incentive will make them take the call immediately. There is no clarity on notification as somewhere it is written properties but then there are places where it is written flats. We have also written to the Rajasthan Government about the stamp duty reduction the same. The sector needs help as it is the largest employment generator. Banks/NBFCs are not lending help and buyers are also making payments, it is creating a difficult situation for the sector. If such incentives are extended to this sector then it will help in economic growth. 

Mohit Goel, CEO, Omaxe Ltd.

The lack of demand in the real estate sector has been a concern. While supply side issues have been adequately addressed by the government and the RBI, the recent decision of the Maharashtra government to slash stamp duty is a welcome step in the direction of shoring up demand. In fact, other state governments must follow suit and initiate cuts so that it encourages home buyers to make purchases, expedite construction and delivery and clear up inventory.

Achal Raina, COO, Raheja Developers

Even as the Maharashtra Govt has announced stamp duty reduction for a limited period, the decision is bound to reduce overall cost for the end-users, which in turn will provide a much needed filip to demand during the festive season especially considering that interest rate is near 15-year low. As NCR is a very important market from real estate perspective, it is imperative that the Government of Delhi, Uttar Pradesh and Haryana follow suit. This will certainly revitalise demand and help in employment generation as well.

Ankit Kansal, Founder & MD, 360 Realtors

The reduction of 3% point stamp duty is a very prudent decision, as it will give a direct benefit to the home buyers. Overall demand will increase in Maharashtra, resulting in the revival of the MMR realty market and offering further impetus to the Pune market. NRI buyers who are looking to purchase with an investment point of view will also feel incentivized. The timing is also apt, as it is the festive season already.

Vikas Garg, Deputy MD, MRG World

Stamp duty cut in Maharashtra will provide the much-needed festive season boost to the real estate sector there. Considering the realty market in Northern India, Delhi NCR has ample of inventory in the affordable and mid-segment housing. A little push with reduction in stamp duty will incite the fence-sitters to move close towards the decision of property purchase.  The support from banks in terms of low home loan interest rates is prevalent, developers are willing to offer deferment payment plans and prices continue to exhibit stability. There cannot be a better time than this to bring about the dynamic change for the sector to gain better pace towards recovery. Government of Delhi, Uttar Pradesh and Haryana must consider and pay close attention to this announcement, analysing the sea change it can bring in employment opportunities and betterment of the overall economy.

Corporate Comm India (CCI Newswire)