Real Estate industry which has been facing a slowdown for long, is hoping things will change this Gudi Padwa. Hopes are high because of reduction in stamp duty.
By Varun Singh
Real Estate Industry has been facing a slow down even before the other sectors faced the wrath of global meltdown.
However, after a long time, the real estate industry is hopeful that things will change this Gudi padwa.
Many people make big purchases as a part of the ritual on Gudipadwa. Since, Stamp duty charges are also been reduced, it is expected that developers will further encourage people to buy the property with exciting offers and discounts.
During Gudi Padwa most developers introduce new payment plans to entice home buyers and the new change is stamp duty is expected to benefit the real estate industry.
Vikas Jain, Managing Committee member, CREDAI-MCHI Raigad Unit, says that during the earlier meeting with the government with the representatives of real estate industry, they had requested to lower down the stamp duty charges and it has been fulfilled by the government which will be a positive step for the realty sector.
He said, “This will take some burden off the homebuyers as purchasing power will increase and will encourage the sales in the coming year. Overall a positive step by the Government before Gudi Padwa.”
Farshid Cooper, Managing Director of Spenta Corporation, says, “With the latest announcement by the Maharashtra State Government of reduction of stamp duty by 1% for the next 2 years, we can expect to witness the revival of the sector and sale of the existing inventories. Huge unsold inventory and ready-to-move-in properties in Mumbai, Pune, and Nagpur are likely to benefit from this announcement. The festivities like Holi and Gudi Padwa are also approaching and we are hopeful that the sales will see an uptick in the next couple of quarters. The real estate industry welcomes the State Government’s initiative to provide relief and promote the revival of the sector.”
As Maharashtra government announced state budget for 2020-2021, the revised stamp duty has brought cheer in the real estate sector. This is expected to bring a positive change in sales as it takes some burden off the homebuyer. Affordable housing will be impacted due to this in a good way.
Ram Naik Executive Director, The Guardians Real Estate Advisory, said “This reduction in stamp duty is bound to have an immediate, short term impact by helping close transactions that are pending negotiations. The 1% reduction for the next 2 years will significantly boost mid-income and affordable housing as booth these segments are extremely price-sensitive.”
Ritesh Mehta, Senior Director & Head – West India, Residential Services | Developer Initiatives, JLL, said, “This move will definitely unlock Residential deals this year and will encourage the end users to expedite their decision to buy real estate! Back to back moves to reduce GST last year and stamp duty reduction this year signifies that the government is trying its best to revive the lost sheen in real estate industry.”