Reduction in stamp duty to boost real estate demand
Last Updated on, November 1st, 2022
Real estate demand to increase significantly as Maharashtra Government reduced the stamp duty to 2%
Maharashtra government on 26th August announced reduction in stamp duty for home purchase between a specific time period i.e. 1st Sept to 31st March’2021. The duty will be reduced in two slabs, according to an official statement.
Below are the reduction slabs:
- There will be a 3% reduction in stamp duty between Sept. 1 and Dec. 31, 2020.
- 2% reduction between Jan. 1, 2021, and March 31, 2021.
For Mumbai,
- Stamp duty will be 2% between Sept. 1 and Dec. 31, 2020
- Stamp duty will be 3% between Jan. 1, 2021, and March 31, 2021
For Panvel & Thane,
- Stamp duty will be 3% between Sept. 1 and Dec. 31, 2020*
- Stamp duty will be 4% between Jan. 1, 2021, and March 31, 2021*
*1% Local body tax / Gram Panchayat Tax applicable in Thane and Panvel
This move of the Maharashtra government will encourage first time home buyers, fence sitters, as well as resale flat buyers to invest in real estate. Coupled with festive deals on offer and the significantly reduced initial outflow due to the reduced stamp duty burden, expect a lot of deals to happen in this period.
With economic growth expected to be under pressure in the short term, this move will bring some respite to home buyers and in turn increase in demand for real estate projects.
Also analysts expect the move will increase the revenue for government as the number of registrations are expected to increase.
Our MD, Mr. Mayur Shah predicts the move will likely see a spike more in the affordable and mid-segment properties, owing to their price point, these segments will likely be the growth drivers for residential real estate market.
For the home buyers reduction in stamp duty, the low interest on home loans, credit-linked subsidy offered by the central government under PMAY scheme and other such benefits could mean that this could be the the right time to own a property.
