Real estate demand to increase significantly as Maharashtra Government reduced the stamp duty to 2%
Maharashtra government on 26th August announced reduction in stamp duty for home purchase between a specific time period i.e. 1st Sept to 31st March’2021. The duty will be reduced in two slabs, according to an official statement.
Below are the reduction slabs:
- There will be a 3% reduction in stamp duty between Sept. 1 and Dec. 31, 2020.
- 2% reduction between Jan. 1, 2021, and March 31, 2021.
- Stamp duty will be 2% between Sept. 1 and Dec. 31, 2020
- Stamp duty will be 3% between Jan. 1, 2021, and March 31, 2021
For Panvel & Thane,
- Stamp duty will be 3% between Sept. 1 and Dec. 31, 2020*
- Stamp duty will be 4% between Jan. 1, 2021, and March 31, 2021*
*1% Local body tax / Gram Panchayat Tax applicable in Thane and Panvel
This move of the Maharashtra government will encourage first time home buyers, fence sitters, as well as resale flat buyers to invest in real estate. Coupled with festive deals on offer and the significantly reduced initial outflow due to the reduced stamp duty burden, expect a lot of deals to happen in this period.
With economic growth expected to be under pressure in the short term, this move will bring some respite to home buyers and in turn increase in demand for real estate projects.
Also analysts expect the move will increase the revenue for government as the number of registrations are expected to increase.