At the cabinet meeting chaired by chief minister Uddhav Thackeray, it was decided that the urban development department would give premium concession to construction projects, which will have to pay full stamp duty to customers.
Real estate stocks were in focus on January 7, a day after the Maharashtra cabinet cleared a proposal to cut government levies on real estate sector by 50 percent.
Realty stocks including Sobha, Sunteck Realty, Oberoi Realty and Indiabulls Real Estate were up 4-5 percent each followed by Mahindra Life, Godrej Properties, Prestige Estates, Phoenix Mills, DLF and Brigade Enterprises with Oberoi Realty and Godrej Properties hitting a new 52-week high.
After reducing stamp duties in the state to boost residential sales, the Maharashtra government on January 6 approved the proposal to cut the premium on real estate projects by half till December 31, 2021. Developers availing of the scheme would have to pay full stamp duty and registration charges on behalf of homebuyers.
At the cabinet meeting chaired by chief minister Uddhav Thackeray, it was decided that the urban development department will give premium concession to construction projects. Projects will have to pay full stamp duty to customers.
It was decided at the meeting that as recommended by the Deepak Parekh Committee, a 50 percent discount will be given on all the various premiums levied by the state government on construction projects till 31.12.2021 and also concessions in the premiums levied by all planning authorities/local administrations at their level.
Real estate experts said that the move would go a long way in expediting project completion and the industry would witness new launches. The premium reduction, coupled with the stamp duty charges, which will also be borne by the developers, will lead to reduced cost for homebuyers.
Siva Krishnan, Managing Director and India Head, Residential Services, JLL India said the move would reduce the landed cost for the developers, thereby rationalising the cost and reducing the burden on customers. It is expected to further trigger the recovery of the residential real estate market which has seen a good uptick in the last two quarters due to factors like lower interest rates, pro-active measures from the govt like stamp duty reduction.
These decisions would bring both endusers and investors back to the residential market. The country’s residential sector is seeing an acceleration in sales leading to a fast-paced recovery from the impact of the pandemic, he added.
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