The 2% stamp duty cut shall come to an end on March 31. The high sales being recorded in Mumbai since September 20202 are being attributed to the stamp duty cut. Now realtors are requesting the government to extend the cut.
By Varun Singh
The government last year gave the real estate industry one of its best gifts. It was the stamp duty cut.
Between September 2020 till December 31, 2020 it was a 3% stamp duty cut, and then till March 31, it was 2%.
In two days the stamp duty cut shall come to an end and now realtors have put forth a demand to extend it.
CREDAI MCHI one of the apex realtors body in Mumbai and MMR even personally wrote a letter to Revenue minister Balasaheb Thorat to extend the benefits for 12 months.
Deepak Goradia, President, CREDAI MCHI said, “We have requested the Maharashtra Government, to grant and extension of the stamp duty rebate for another 12 months to sustain the momentum whilst continuing the positive cucle of investment.”
Realtors from other bodies have also shared the same feeling. For example, NAREDCO Maharashtra, another apex realtors body in the state wants the stamp duty cut to be extended for next two quarters.
Ashok Mohanani, President – NAREDCO Maharashtra, said, “On behalf of the real estate fraternity, we at NAREDCO urge the State Government to extend the reduced 3% stamp duty charges for another two quarters so that home buyers continue to be encouraged and invest in their dream homes.”
The last few days saw a hike in sales, as homebuyers could avail the stamp duty benefit coupled with the reduction in home loan interest rates.
Pritam Chivukula – Co-Founder & Director, Tridhaatu Realty and Hon. Secretary, CREDAI MCHI, said, “We can witness a considerable rise in property registrations this month as the buyers are swooping in on good deals on the back of rock-bottom interest rates on home loans, stamp duty relaxation, offers and the availability of choices from good developers. We expect the trend to continue if the Government decides to extend the stamp duty benefit for some time.”
Along with realtors experts also expressed the fear that sales may go down if the stamp duty cut isn’t extended.
“We believe in the first quarter of FY22, the market will enter a phase where it will witness reduced volumes until and unless the 3% stamp duty charges are extended further, in order to ensure that the momentum continues,” said Jayesh Rathod, Executive Director, The Guardians Real Estate Advisory.
Also Read: Stamp Duty Concession What Real Estate Industry Wants?
