NEW DELHI: In relief for homebuyers, the government of Maharashtra has decided not to increase immediate calculation rates, also known as circle rates, for fiscal year 2021-22 (FY22). However, against the expectations of many, the state government decided not to extend the stamp duty cut. Home sales recovered well, supported by reductions in stamp duties, low mortgage rates and attractive programs offered by developers.
Amit Goyal, CEO of India Sotheby’s International Realty, believes that extending the stamp duty reduction would have helped maintain sales momentum.
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“The reduction in stamp duties, which was introduced in September last year to help the real estate industry weather this global crisis, has helped accelerate demand for housing in the primary and secondary residential markets, including the upscale luxury hotels in the Mumbai Metropolitan Area (MMR) and Pune, the two key cities in the state. The sales registration numbers of these two cities bear witness to this fact. Even the state government revenues remained intact, in fact they increased during this period of September 2020 and March 2021. It was a win-win situation for all stakeholders and gave the sales momentum essential to MMR developers, ”said Goyal.
Home sales have picked up in the state, with the government cutting the stamp duty in August from 2% to 3%. The stamp duty was reduced to 2% from 5% until December 31, 2020, and was 3% in January-March 2021. The reduced rate expired on March 31, 2021 and many had hoped that the government would offer an extension. . On Women’s Day, the government announced a 1% reduction in stamp duty, which would come into effect on April 1.
Some experts believe, however, that the decision not to extend the stamp duty reduction will not deter homebuyers.
“The reduction in stamp duties has certainly helped boost residential sales in the Mumbai metropolitan area (MMR), despite the pandemic. That said, the speed of sales was also helped by discounts given to builders and low interest rates on home loans. Together, these factors have lowered the cost of buying a home in MMR by 5 to 15%. Still, the people of MMR aren’t buying homes just because they’re cheaper – they are buying them because the covid-19 pandemic has instilled urgency and a desire for self-reliance from rent and landlords. ” , said Anuj Puri, chairman of Anarock Property Consultants.
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