To spur demand in real estate sector, realty developers’ body CREDAI-MCHI in Mumbai Metropolitan Region (MMR) has urged the state government to cut stamp duty by 1% for the next 4 months.
Presently, stamp duty in Maharashtra’s key property markets is 5% after the state government provided a 1% concession from 1st April 2020. The concession is applicable to areas like the Mumbai Metropolitan Region, Pune, Nagpur and Pimpri Chinchwad for a period of two years.
According to industry stalwarts, the entire real estate fraternity has suffered extensively due to this unprecedented scenario and urgently needs critical intervention from the Maharashtra government to overcome this unforeseen situation. This one percent reduction in the stamp duty for four months is anticipated to not only encourage home buying in the MMR but it will also provide the much-needed boost to the real estate sector and give a thrust to the housing sales in Maharashtra.
This crisis has resulted in extensive loss of jobs and businesses in the real estate sector, which is touted as the largest employment generating sector. This concession will encourage developers to form alliances and develop the land parcels collectively during these tough times.
Considering the current situation in the country, CREDAI has further requested the authority to share a stimulus package to ease the fear of job loss in the industry amongst the workforce.
Maharashtra has reported the highest COVID-19 cases so far in the country. A day after the government announced the extension of the lockdown phase till May 3, the Ministry of Home Affairs released a list of economic activities that will be permitted after April 20 in non-COVID-19 hotspot zones. The real estate sector is already struggling due to poor sales, this reduction in the stamp duty will not only boost sales but will also improve the purchasing power of the middle-class home buyers.
