New Delhi, Aug 21 (IANS) As the pandemic brings the real estate demand to a grinding halt, Anarock Property Consultants has suggested that reduction in stamp duty can boost festive demand in the residential segment.
“With states like Maharashtra and Karnataka mulling a reduction in stamp duty and registration charges, the festive season — beginning with ‘Ganesh Chaturthi’ — may get a very real shot in the arm. Both a one-time waiver for first-time homebuyers and an outright cut in stamp duty charges could be festive season game changers,” it said in a report.
It said that such measures are not new, and in earlier unprecedented times of extreme market stress, such as post-demonetisation and RERA, some state governments had given concessions to boost their sluggish real estate markets.
In FY 2017-18, the Haryana government slashed circle rates by 3-8 per cent in order to push housing sales while Maharashtra kept their ready reckoner rates unchanged, instead of revising them upward, the same year to push demand.
Anuj Puri, Chairman, Anarock Property Consultants, said: “Apart from the obvious homebuyer benefits, the government can generate badly-needed revenue via increased registrations after the most severe downturn in recent history. Affordable and mid-segment properties, which are in maximum demand, would see the most traction from such a move.”
He also said that to ease inventory pile-up and cost overruns, many players have already topped off discounts with added incentives such as booking amount refunds, statutory fee waivers, cash back schemes, easy payment structuring and assorted freebies.
A stamp duty rate cut could push sales into the green during the festive season, Puri added.