Developers have asked the Maharashtra government to provide full or partial exemption from paying stamp duty to boost real estate sales in the state.
This specific request was made to Chief Minister Eknath Shinde on Sunday during the real estate exhibition organized by the National Real Estate Development Council (NAREDCO) in Mumbai.
Those who fought for the concession were Pratap Sarnaik, Shinde Camp MP and Builder, Raunak Group Chairman and NAREDCO (West) Vice Chairman Rajan Bandekar, among others.
Providing the rationale for the request, they referred to the rising interest rate for home loans. The latest was made last week by the Reserve Bank of India when a half percentage was raised. Since May, the RBI has raised the interest rate by 190 basis points or 1.90% in four monetary policy announcements.
Buyers of real estate must pay a stamp duty of 6%, which has been increased by a percentage from April 2022. The government has levied a transport surcharge and a metro tax for the infrastructure under construction. creation in the Mumbai metropolitan area.
During the pandemic, the government of Maharashtra supported economic activity had reduced the stamp duty to 2% from September to December 2020 and to 3% between January and March 2021. The same was restored to 5% from April 2021 and increased by 1% a year later.
“If the state were to waive half of the stamp duty, we developers are willing to give the remaining 3% to homebuyers. In effect, it will be zero stamp duty for end consumers. This will help to increase the sales momentum for the existing housing stock inventory,” said Sandeep Runwal, Chairman of NAREDCO Maharashtra and Managing Director of Runwal Group.Currently, the industry has an excess of inventory of about four months.
In another request, Manju Yagnik, vice-president of the Nahar group, asked for additional concessions for women buyers.
At the real estate exhibition, CM Shinde was coy but kept the option open saying he would consider partial stamp duty exemption after he was provided with a detailed analysis of the benefits of the concession. During the pandemic, in the former Maha Vikas Aghadi government, he was in charge of the urban development portfolio and successfully proposed and pushed for stamp duty payment relief, this decision gave the impetus to the real estate sector with more of 200 industry allies associated with industry to recover from the economic shock induced by Covid-19.
Last year, the MVA government provided various concessions to the industry, such as 50% of construction premiums paid by builders to the state. For homebuyers, this benefit has not translated into an equivalent reduction in house prices. On the contrary, the builders’ lobby has increased the selling prices of their projects wherever infrastructure and transport networks are under construction and nearby.
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