Real estate experts welcome the move, saying it would provide relief to homebuyers looking for affordable properties.
The Maharashtra government on March 6 announced that it is reducing stamp duty on properties by 1% for Mumbai, MMRDA Region and Pune for a period of two years.
The Karnataka government, in its recent Budget tabled earlier this week, also reduced stamp duty charges for all affordable homes priced within Rs 20 lakh to 2 percent from 5 percent from April 1.
Tabling the first Budget of the Maha Vikas Aghadi government, which completed 100 days in office on March 6, Deputy Chief MinisterAjit Pawar, who also holds the finance portfolio, announced tax concession proposal.
"There would be 1% stamp duty concession for the next two years and other related charges applicable on registration of documents in the areas falling under the Mumbai Metropolitan Region Development Authority (MMRDA) and municipal corporations of Pune, Pimpri-Chinchwad and Nagpur," he said.
According to data shared by Anarock, housing sales in 2019 in MMR saw a jump of 22% against 2018.
"A 1% reduction of stamp duty in key cities of Maharashtra will definitely give some monetary relief to homebuyers, particularly those seeking affordable properties. While it may not increase housing sales by a huge margin in other budget categories, it will definitely encourage a significant complement of fence-sitters eyeing affordable homes to take the plunge," said Anuj Puri, Chairman – ANAROCK Property Consultants.
Vikas Jain, Managing Committee member, CREDAI-MCHI Raigad Unit and CEO of Labdhi Lifestyle, also lauded the government's move.
"Lowering down the stamp duty charges from 6% to 5% is a good step taken by the Maharashtra government in today's Budget. Reduction in Stamp duty will benefit homebuyers as their purchasing power will increase,” said Vikas Jain, Managing Committee member, CREDAI-MCHI Raigad Unit and CEO of Labdhi Lifestyle."This effectively, will result in 4 percent stamp duty and 1 per cent Metro cess. The suggestion put forward by industry bodies was for a 50 percent reduction but this is a beginning. while the move will impact collections, which might go down by an estimated Rs 1,800 crore, the shortfall can be recovered through alternative avenues as also the impact of multiplier sales that will happen," said Niranjan Hiranandani, president (National) NAREDCO as also President, ASSOCHAM.
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