The Maharashtra government, on Wednesday, slashed premiums and levies charged on construction by 50 per cent till December 31 2021, an initiative expected to boost the real estate sector in the state and city.
Real estate developers feel that the state government’s decision will boost the real estate industry which has been affected by months of lockdown and subsequent decline during the last one year.
Omprakash Deshmukh, Inspector General of Stamps and Registration, stated that it would give a strong impetus to the sector.
Deshmukh said, “This decision by the state government will give a major boost to the real estate sector. It is a relief to customers as one of the GR clause states that builder will have to pay the entire stamp duty. This will positively impact the market and buyers will increase.”
Suhas Merchant, president, Credai Pune termed the decision as a welcome step. Merchant said, “It can provide great relief to cash-stressed real estate projects. In the past two years not many projects were launched due to shortage of funds. Though we need to study the decision in detail, I definitely feel that more projects will be launched now.”
Rohit Gera Managing, director, Gera Developments said, “The move to reduce the premiums is extremely welcome. It will provide respite to cost burdens for developers, thereby spurring on more supply at lower prices. It is, however, important to realise that the charges paid for approvals include development charges and other charges under other heads. Effectively this means the total benefits will be much less than 50%.”
Nitin Gupta, senior vice-president, sales, marketing and CRM, Mantra Properties, said, “With reduced stamp duty charges and now this rationale by the government brings in great relief to the developers wherein ever increasing costs of construction can be offset to an extent. The environment today with low interest rates and reduced stamp duty was pushing the demand for homes and with the reduction in premium charges, we’ve got a catalyst to help the sector grow.”
Vineet Goyal, joint managing director, Kohinoor Group, said, “We all are seeing the positive impact of stamp duty reduction. Similarly, we feel that this step will also prove to be beneficial for both, the real estate developer and the home buyer. It will provide considerable relief to the ailing real estate sector, where cash flows are affected due to lockdown and will provide a direct cost benefit to the home buyer. The state government is concerned about the real estate sector which directly indirectly helps many other business segments.”
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