On the occasion of Women’s Day, the Maharashtra government announced a 1 percent cut on stamp duty charges if the transfer of house property or registration of sale deed is in the name of a woman.
"On International Women's Day, I propose concession in stamp duty of 1 percent over the prevailing rate exclusively to women, provided the transfer of house property or registration of sale deed is in the name of woman or women only," Maharashtra finance minister Ajit Pawar said while presenting the state Budget on March 8.
"Due to this concession, there will be a revenue shortfall of around Rs 1,000 crore," he said.
Real estate developers said the move will provide a further boost to housing sales in the state.
“The Maharashtra government's announcement of a 1 percent rebate on stamp duty and registration of properties registered in the name of a woman will give a further boost to the housing sales in the state, it will help empower women. This is an apt gift for women homebuyers on International Women's Day. We have seen the impact of a cut in stamp duty in 2020, the latest announcement is expected to boost the momentum,” said Krish Raveshia, CEO at Azlo Realty.
For the real estate sector, a concession of 1 percent for property registered in woman’s name under Rajmata Graha Swamini Yojana is a welcome move. It will help boost demand from this segment of homebuyers. Women have become a key group of homebuyers due to more and more females entering the workforce, becoming key decision-makers, said Rohit Poddar, Managing Director, Poddar Housing and Development.
Niranjan Hiranandani, National President, NAREDCO said, “On International Women’s Day, the Maharashtra state budget announcements include motivating women to invest in real estate, with a proposed concession in stamp duty by 1 per cent. This is over and above the prevailing rate, will be exclusively available to women buyers, provided the transfer of house property or registration of sale deed is in the name of the woman.”
“Despite challenges, including the sharp economic slump in wake of the Covid-19 pandemic, the Maharashtra Budget presented today by the state’s finance minister has focused on mobilizing resources, bolstering social initiatives and giving a boost to infrastructure. It is a laudable effort, and the state will continue its march towards progress,” he added.
On August 26, the Maharashtra government had announced a reduction in stamp duty on housing units from 5 percent to 2 percent until December 31, 2020. From January 1 to March 31, 2021, the stamp duty charges were reduced to 3 percent.
This led to a massive rise in property registration numbers in February.
In February 2021, properties worth Rs 11,745 crore were sold in Mumbai, up by 34 percent year-on-year, according to data shared by Propstack. The total value of properties in September stood at Rs 9,025 crore; Rs 11, 640 crore in October; Rs 14,395 crore in November; Rs 34,025 crore in December 2020; Rs 10,170 crore in January.In December 2020, properties worth Rs 34,000 crore were sold in Mumbai alone, many of them in the luxury segment. Bankers, stockbrokers and even industrialists came forward to close big-ticket real estate deals in the city.