Yesterday evening, the Maharashtra Govt gave a major boost to the floundering real estate sector. This was a much expected news and it finally came in – stamp duty for buying and selling property was cut.
It has been cut in two periods – rates will be down from 5% to 2% in urban areas of the state till December 31 and 3% till March 31, 2021. Urban local body tax has been retained at 1%.
Stamp duty rates have been cut from 4% to 1% in rural areas till December 31 and 2% till March 31, 2021.
This a major cut and realtors expect a major jump in demand in the coming months, creating the much needed demand.
The realty stocks are up and about, celebrating this reduction in stamp duty. The BSE Realty index is up over 6% and all the 10 stocks in the index are up in the green, led by Godrej Properties, Prestige, Oberoi Realty, India Bulls Real Estate, Phoenix, Brigade, Sunteck, Sobha, DLF and Mahlife.