Stamp Duty Reduction in Pune gives a boost to Real Estate Investments
The real estate market has found itself on shaky ground for a while now, impacted by various procedural and regulatory reforms and the recent Covid-19 pandemic. Property
sales across India had come to a standstill during the lockdown. It has immensely hurt residential sales across the country. Pune real estate scene is no different from a host of apartments and flats in Pune awaiting buyers.
In order to boost the realty sector, Maharashtra Govt. has slashed stamp duty for 7 months, up till March 2021.
What does the Maharashtra Government directive say?
Maharashtra govt. has reduced stamp duty by 3% to boost home sales. Homebuyers in the state can enjoy a reduction of 3% in the stamp duty on property registration till December 31, 2020. This reduction in property purchase has been done in two slabs by up to 3%. This 3% reduction will, however, only be applicable from September 1, 2020, to December 31, 2020. From January 1, 2021, to March 31, 2021, a 2% reduction in the stamp duty on property purchases will be applicable.
Amid the Coronavirus-induced lockdowns, the stamp duty collection had touched historic low. This proactive measure taken by the government has given an uplifting sentiment to home buyers.
The reduction in stamp duty, though temporary, could be substantial for a prospective home buyer. So a flat costing 1 crore that earlier attracted a duty of 5 lakhs will now be Rs 2 lakhs from September to December 2020 and 3 lakhs from January 2021 to March 2021. It should bring back investors willing to take a plunge into real estate.
The decision is good for buyers as they will save on the initial investment. It will attract them to purchase early and add to Government revenue.
The Need of the Hour
The lockdown and restriction on movement had led to people deferring site visits and subsequent action. For long, real estate developers had been asking for a reduction in stamp duty following the lockdown to encourage homebuyers to buy properties during the pandemic. It has been observed that house sales had plummeted to a decade’s low in the year’s first half. Although developers have been pushing sales through online channels, it was not enough.
- This move-in Stamp Duty Reduction in Pune will not only benefit the customer and foster demand creation but also give stimulus to the allied industries coupled with employment generation. The real estate market is a sector that supports around 250 other industries, like the ancillary industry connected to the real estate sector. The real estate industry is the second largest employer after the Agriculture market.
- It will also generate more revenue for the government.
- It is a much-needed respite for the real estate industry. It will provide buyers an incentive to buy homes, give them the option to take a decision to buy.
- Also, this Stamp Duty Reduction in Pune will result in significant savings for home buyers.
- Maharashtra has set the stage for other State Governments to emulate this move and set in motion the long-awaited revival of demand in the sector.
- The potent amalgamation of reduction in stamp duty, GST exemption, and the lowest home loan interest rates might prove to be a strong determining factor in favor of the ready-to-move-in homes.
So if you have been looking to invest in apartments in Pune or abode for yourself, this is the right time to take the plunge. Go for it!