Relief for homebuyers: Maharashtra govt likely to cut stamp duty; housing sales may significantly rise
Residential real estate is among the top asset classes today. Demand is, in fact, higher than ever as people are realizing the value of owning a home as it is a sense of emotional security in a bleak global scenario such as the current pandemic. People have realized the importance of basics, and the concept of ‘Roti, Kapda, Makaan’ is back once again. As the corporate world is embracing work from home as a long-term concept, many are seeking to upgrade their homes and look for bigger spaces.
The rental culture which had gained some prominence with the young buyers has witnessed a sea change in the past few months. Not just the elite class group, but also the middle-class income group will look forward to an upgrade. As per a recent report by Anarock, buyers aged 30-35 years, currently living on rent, have the highest purchase inclination.
Keeping in mind the current scenario, the prices are not likely to decrease as there is no margin. Hence it is the correct time for people to invest in real estate. In fact, prices will eventually get stronger, as supply is completely limited and demand is very high. With the government’s announcements to support lending and liquidity, banks and NBFCs are keen on returning to ‘business as usual.’ This is likely to make home loan deals sweeter. To further facilitate homebuyers and aid this demand, measures taken by authorities to reduce levies are certainly the need of the hour.
With the on-going global economic scenario, sentiment boost is a necessity. Not to mention, incentivising is beneficial for fuelling the growth of the real estate sector; one of the highest contributors to the country’s GDP. Let’s take the case in point of the recent tax break announced by the UK Government. It led to a substantial rise in housing sales in the country. The suspension of tax led to a record-breaking rise in homes sales in July 2020; highest in the last decade to be precise.
Hence in the current circumstances, slashing stamp duty and registration by the Maharashtra Government is likely to have a very beneficial impact on sales, which will further enhance liquidity among developers, brokers, and other stakeholders connected to the business of the real estate. It will also stand to be a catalyst for growth for housing sales in the state.
Ram Raheja is Director and Head-Director & Design at S Raheja Realty. Views expressed are the author’s personal.