Homebuyers in Maharashtra have got more reasons to rejoice as NAREDCO extends zero stamp duty benefits till December 31st, 2020.
NAREDCO, Maharashtra is all set to continue with the zero stamp duty scheme, which was introduced in September 2020, following a surge in residential sales in the state. The realty builders’ body has extended zero-stamp duty for homebuyers in Maharashtra till the end of December 2020.
Maharashtra Authorities had lately introduced a 2% cut in stamp duty on property registrations from September 1st to December 31st, 2020. However, the stamp responsibility would be 3% for registered agreements between January 1st to March 31st, 2021.
What’s in it for the Developers and Homebuyers?
The Zero stamp duty benefit will push more investment and attract home-buyers. The move will accelerate foreign investment, particularly in the Mumbai and Pune housing sectors, churning in liquidity to the supply side.
As per industry reports, the recent housing gross sales in Pune and Mumbai residential markets formed a whopping 41% of the nationwide gross sales. NAREDCO anticipates the stamp responsibility waiver will probably introduce analogous progress.
NAREDCO believes that the Stamp Duty waiver spiked sales in the Mumbai residential market by 300% from August till October 2020. Earlier the zero stamp duty offer was valid till Diwali, however, looking at the immense response, developers in the state decided to capitalise on the gained momentum.
The extension of zero stamp duty benefit will help the real estate sector in cities such as Mumbai and Pune, which had been severely hit by COVID. Going with the trend, the next fiscal is expected to witness more liquidity and participation from foreign investors.
The real estate sector is one of the largest employers in the country and such a move will help generate employment. Adding to the home-buying euphoria, NAREDCO's decision will certainly give a fillip to the improving sentiments of homebuyers.
It is a winning strategy for the developers too as this move is sure to attract more buyers to take the final plunge as the year draws to an end. This will aid developers to showcase a positive sales trajectory, thereby closing an otherwise dull year, on a high. This was critical to garner back the foreign investments into the sector that had taken a beating during the first half of 2020.