The decision to waive off the stamp duty has been taken under the Western Region Chapter of Naredco, one of the real estate associations in the country.
More than 600 developers of Mumbai Metropolitan Region, Pune and Nashik holding over 1,000 projects have decided to waive off the stamp duty on residential property which will be bought till October 31, 2020, for the homebuyers.
This is a first concerted effort taken by large number of developers in the state when the housing sales are plummeting and demand is at decadal lows. In a bid to boost demand, the stamp duty will be borne by the developers.
The stamp duty charges on residential apartments in the state have already been reduced from 5% to 2% till December 31. Between January 2021 and March 31, 2021, the stamp duty will be 3%, Maharashtra government announced last week.
However, in order to further boost demand, builders are now going a step ahead to waive off the stamp duty, for a limited time period. The waiver of the stamp duty will lead to direct savings of about Rs 1,50,000 for a Rs 50-lakh apartment in the state. Some of the prominent developers like Tata Housing, Runwal Group, Poddar Housing, Wadhwa Group, Nahar Group, among several others, having presence in affordable and mid-segment, will be waiving off the stamp duty.
The move comes at a time when the already sluggish housing sales have nearly collapsed with the disruptions induced by Covid-19 pandemic. Apartment sales have crashed to decadal lows, with sales in Mumbai, the country’s most expensive real estate market, declining 45% to 18,646 units, according to a Knight Frank report for January-June 2020.
The decision to waive off the stamp duty has been taken under the Western Region Chapter of Naredco, one of the real estate associations in the country. With this, almost 60% of the members of Naredco will be complying with the decision and the remaining members are also expected to join the decision soon.
The association members will be offering this scheme through direct sales channels as well as its online portal, HousingForAll.com.
Rajan Bandelkar, president, Naredco (West) said, “This move will bring a new wave of home-buying in the short–run and change the demand-supply dynamics positively. It will also result in a substantial savings and reduction in transaction costs for the end user”.