Stamp duty incentives will soon disappear, so make the most of them while you can.
You only have till March 31!
Before you know it, March 31, 2021, will be upon us, and the stamp duty incentives on
property will have vanished. So if you’ve been sitting on the fence about buying your dream
home, you’d be wise to take that decision quickly and benefit from reduced stamp duty.
This state government-levy is something that all property buyers must pay, but in trying to
boost the real estate market, the government has been generous in recent times. That’s why it
slashed stamp duty rates by 3% from September 1 to December 31, 2020, and by 2% from
January 1 to March 31, 2021.
What this means is that if you are buying a property in Mumbai, you would pay 3% stamp
duty rather than 5%, and if you are opting for Pune, you’d pay 4% instead of 6%.
“Buyers need to avail of these benefits quickly because it is unlikely the incentives will be
further extended. With the stamp duty incentives and lowest ever interest on home loans,
there has never been a better time to buy,” says Sunny Bijlani, Joint Managing Director,
Adds Vishal Jumani, Joint Managing Director, Supreme Universal, “We are expecting a big
wave of buying over the next few weeks before March ends, and have already seen
inventories shrinking. So if people delay their purchases, they may find it difficult to get
properties of their choice.”
The real estate sector has already seen a record number of sales over the last few months.
Last June, almost immediately after the lockdown was lifted, registration offices in Mumbai
and suburban localities recorded a mind-boggling figure of around 2,100 property
transactions in about a month. Since then, we have been seeing sales increase by the day. As
Hindu Businessline reported in January 2021: “Thanks to rationalisation in pricing and low
interest rates, the surge in demand in the housing segment is likely to continue.” Quoting a
Knight Frank India report in December 2020, it added that “this whopping 60 per cent
reduction in stamp duty by the Maharashtra Government saw the registration of residential
properties in Mumbai jump over two-fold in December to 18,854 units.”
In Pune, according to Propequity data released in January 2021, residential sales were the
highest in the country in the last quarter compared to Tier 1 cities. In the fourth quarter of
2020, Pune saw record sales of 25,415 units.
Certainly, the reduction in #stamp duty rates has made a huge difference in buying decisions.
In fact, more than 70% of respondents in a recent Magicbricks poll said they would buy a
house if stamp duty rates were lower in their states. Other factors such as #WFH have also
impacted #homebuying decisions, as people seek to upgrade their living spaces and look for
properties that offer them recreational facilities within their projects.
Time is running out if you want to avail of the stamp duty benefits before March 31, so book
your dream home now!