Maharashtra realty market likely to become more robust: Mani Rangarajan, Group COO, Housing.com
By-- Mani Rangarajan, Group COO, Housing.com, Makaan.com & PropTiger.com
The global pandemic has staggered the economy of the entire country. Now that 6 months have passed post the lockdown, the economy has started showing signs of recovery. Realty, like any other sector, suffered and in order to boost the sector, the government has time and again tried to accelerate the sector with stressed funds, loan restructuring and RBI’s measures such as reduction in loan interest rates being at 15 year low leading to some improvement in the overall sector.
However, this improvement was not so concrete that the real estate sector could gain rapid momentum.
On the other hand, in order to strengthen the real estate sector, the Maharashtra government took unique steps in which it first reduced the stamp duty, a historic decision in the history of real estate market. Maharashtra became the first state in the country to introduce stamp duty reduction, states like Karnataka followed. After this decision, state governments and industry leaders across the country also appreciated the move. As other states were also struggling with the expectations of the real estate sector and were awaiting strong steps like these.
The homebuyers in Maharashtra were directly benefited from the reduction in stamp duty during the Corona period, leading to sales of residential units increasing significantly. This step also increased the revenue of the state government and added on the topline of the builders.
After this step, other states are also contemplating about taking strong measures; recently the Maharashtra government has again taken a profound decision for the real estate sector. The state government has decided to give 50% rebate on all premiums for construction projects by 31 December 2021, thereby bringing great relief to the builders. In addition, the projects availing of this rebate will have to pay the full stamp duty on behalf of the customers.
The construction industry was hit hard and the builders were suffering from multiple challenges during Covid-19 imposed lockdown. Therefore, to revive the sector, it was decided to grant exemption in stamp duty for promoting the housing sector. This concession would be valid till 31 March 2021. Therefore, end-users would get a direct benefit from the concession given by the state government in premium. With announcement of such measures, Maharashtra real estate market is likely to become more robust in coming days.