Good News for Homebuyers: Maharashtra Slashes Stamp Duty To 2% on Real Estate
Mumbai Metropolitan Region (MMR) is arguably the biggest real estate market in India, where MMR and all of its suburban regions contribute almost 60% of the total revenue collected through realty in our country. Amidst the COVID-19 pandemic and the lockdown that followed it, realty markets have suffered the brunt of stagnation, as builders had difficulty finding buyers. Potential buyers refrained from buying/selling their property assets due to instability and financial upheavals.
Events like these affect most potential buyers and fence-sitters, along with the owners and builders. Since a single civic governing authority manages Mumbai and its suburbs - MMRDA (Mumbai Metropolitan Region Development Authority) - even they suffered, as the lack of liquidity in real estate caused a decreased flow of revenue to the Government treasury. For the past few months, builders and developers in Mumbai were urging the MMRDA to reduce the stamp duty that they impose, by stressing how this reduction would encourage buyers to invest more, and thus prove to be beneficial for everyone involved in property-related transfers and transactions.
Stamp duty is the tax revenue collected by the governing body, in exchange for providing ‘stamp paper’; a document used for signing contracts and transfers related to realty. It is collected in terms of the percentage of the total amount of the asset to be received by the owner. Previously, a 5% stamp duty was imposed on property related transfers and leases. On August 26, 2020, as the country moved towards its unlocking stages, in order to provide the much-needed stimulus to the real estate market, the Maharashtra government slashed the stamp duty from 5% to 2%. This stamp duty reduction makes a huge difference to convert potential buyers into actual sales, and ease the economic stress on builders and developers in Mumbai, who suffered amidst limited demand and decreased cash flow in the markets. Janay Shah, the chairman of CREDAI National, made a statement, “Whenever there has been a reduction in stamp duty in the past, it has only led to an increase in revenue in the government treasury.” Thus this would also help to regain some of the revenue, despite the reduction in the percentage of tax levied. This kind of a real-estate tax benefit is proven to improve liquidity, along with the generation of revenue, paired with a revival in the employment sector, where masons and other skilled/non-skilled laborers can start earning again.
This reduction is only valid until 31 December 2020, making the following few months practically the best possible time for first-time buyers, resellers and owners to invest in real estate markets.
Renowned for luxurious apartments, Runwal is one of the leading real-estate builders and developers in MMR that offer home-buyers every kind of amenity that they could need. Offers on stamp duty are available on all residential projects by Runwal. You can view the exclusive offers and discounts here https://www.runwal.com/residential-projects
In addition, Runwal are accepting EOIs (expression of interest) for their upcoming project at LBS Marg, Mulund, along with SUPER SAVINGS that can be availed only until the 10th of October, 2020. We are launching our new project, a perfect mix of luxury and modernity, in one of the well-maintained and prominent neighborhoods of Mulund. Buyers can avail of the discounts by sending us their EOIs soon.
