Maharashtra govt. cuts stamp duty to 2 per cent

27 Aug 2020 CW Team

Stamp duty from Jan 1, 2021, until March 31, 2021, will be 3 percent, they said. The decision was taken at the state cabinet meeting on August 26.

Real estate developers had been asking for a reduction in stamp duty following the lockdown to encourage homebuyers to purchase properties during the pandemic.

The move will benefit the customer and foster demand creation along with giving a stimulus to the allied industries coupled with employment generation. The stamp duty reductions in the past have led to an increase in revenue in the government treasury.

Industry veterans believe that this is a proactive measure taken by the government and was most needed. It will provide buyers an incentive to buy homes, give them the option to take a decision to buy.

The decision to reduce the stamp duty from 5 to 2 per cent till December 31, 2020 augurs well for the revival of MMR realty and is a much-needed boost to the ailing sector amid the pandemic. The reduced cost of the stamp duty is bound to encourage first-time homebuyers, fence-sitters as well as resale flat buyers to invest in real estate.

State revenue minister Balasaheb Thorat recently indicated a 2 to 3 per cent reduction in stamp duty on property registrations in the state was in the anvil.

With many other favourable market conditions, this announcement shall realign real-estate sector to see volumes in transactions.

In Maharashtra, stamp duty charges are at 5 per cent in key cities like Mumbai, Pune, Nagpur and Nashik and 6 per cent in others. A 2-3 per cent reduction in rates will result in significant savings for home buyers.

To do away with inventory pile-up and cost overruns, many have already topped off discounts with added incentives such as booking amount refunds, statutory fees waivers, cashback schemes, easy payment structuring, and assorted freebies. A stamp duty rate cut could push sales into the green during the festive season.

The Maharashtra government on March 6 had announced that it is reducing stamp duty on properties by 1 per cent for Mumbai, MMRDA Region and Pune for a period of two years.

COVID-19 has highlighted the urgent need for affordable housing – rental or buy – across the country's cities where most migrant workers come to seek a living.

The scale of the outbreak has given rise to new ways of life and a seamless adaptation to several new norms. Remote working or work from home and virtual interactions have found greater acceptance in the wake of the pandemic. A clear distinction between a pre and post-COVID world is being established even as businesses gradually try to pick up activity in the recent weeks after prolonged lockdown. In the post-COVID era, we foresee a massive mindset shift in how people live and work.

In a bid to boost the stagnant real estate market in Maharashtra, affected due to the COVID-19, the state government has reportedly decided to reduce stamp duty on housing units from 5 to 2 per cent until December 31, 2020.Stamp duty from Jan 1, 2021, until March 31, 2021, will be 3 percent, they said. The decision was taken at the state cabinet meeting on August 26.Real estate developers had been asking for a reduction in stamp duty following the lockdown to encourage homebuyers to purchase properties during the pandemic.The move will benefit the customer and foster demand creation along with giving a stimulus to the allied industries coupled with employment generation. The stamp duty reductions in the past have led to an increase in revenue in the government treasury.Industry veterans believe that this is a proactive measure taken by the government and was most needed. It will provide buyers an incentive to buy homes, give them the option to take a decision to buy.The decision to reduce the stamp duty from 5 to 2 per cent till December 31, 2020 augurs well for the revival of MMR realty and is a much-needed boost to the ailing sector amid the pandemic. The reduced cost of the stamp duty is bound to encourage first-time homebuyers, fence-sitters as well as resale flat buyers to invest in real estate.State revenue minister Balasaheb Thorat recently indicated a 2 to 3 per cent reduction in stamp duty on property registrations in the state was in the anvil.With many other favourable market conditions, this announcement shall realign real-estate sector to see volumes in transactions. In Maharashtra, stamp duty charges are at 5 per cent in key cities like Mumbai, Pune, Nagpur and Nashik and 6 per cent in others. A 2-3 per cent reduction in rates will result in significant savings for home buyers.To do away with inventory pile-up and cost overruns, many have already topped off discounts with added incentives such as booking amount refunds, statutory fees waivers, cashback schemes, easy payment structuring, and assorted freebies. A stamp duty rate cut could push sales into the green during the festive season.The Maharashtra government on March 6 had announced that it is reducing stamp duty on properties by 1 per cent for Mumbai, MMRDA Region and Pune for a period of two years.COVID-19 has highlighted the urgent need for affordable housing – rental or buy – across the country's cities where most migrant workers come to seek a living.The scale of the outbreak has given rise to new ways of life and a seamless adaptation to several new norms. Remote working or work from home and virtual interactions have found greater acceptance in the wake of the pandemic. A clear distinction between a pre and post-COVID world is being established even as businesses gradually try to pick up activity in the recent weeks after prolonged lockdown. In the post-COVID era, we foresee a massive mindset shift in how people live and work.

Infrastructure Transport

15 Sep 2025

Cabinet Approves Key Highway and Rail Projects in Bihar Region

The Union Cabinet on Wednesday approved the four-laning of the 84.2-km Mokama-Munger section of the Buxar-Bhagalpur high-speed corridor, a key industrial region in poll-bound Bihar. The Cabinet also sanctioned the doubling of the 177-km Bhagalpur-Dumka-Rampurhat railway line, which passes through Bihar, Jharkhand, and West Bengal, at a cost of Rs 31.7 billion.The Rs 44.5 billion highway project will be constructed under the hybrid annuity model, a variant of public-private partnership. The Mokama-Munger stretch was the only remaining two-lane section of the 363-km Buxar-Bhagalpur corridor. Fou..

Infrastructure Transport

15 Sep 2025

NGT Issues Notice on Bengaluru Twin Tunnel Project

The National Green Tribunal (NGT) on Wednesday issued notices in response to a petition filed by Bengaluru Praja Vedike and others, challenging the Bengaluru twin tunnel road project. Petitioners claim the project was “hastily announced” and bypassed mandatory environmental impact assessment procedures.Notices have been served to the Karnataka Government, Greater Bengaluru Authority, State Environment Impact Assessment Authority (SEIAA), Bengaluru Smart Infrastructure Ltd (B-SMILE), the Union Ministry of Environment, Forest and Climate Change, and project consultants.The 16.74-km twin-tube..

Real Estate

15 Sep 2025

India’s Residential Sales to Dip Slightly in FY26

Residential sales in India’s seven major cities are projected to decline by up to 3 per cent year-on-year in FY26 to 620–640 million square feet (msf), amid a moderation in sales velocity, according to ratings agency Icra.In FY25, sales stood at 643 msf, down 8 per cent YoY, following a sharp contraction in new launches and moderated demand in the affordable and mid-income segments. This slowdown came after the sector posted a robust compound annual growth rate of 26 per cent in area sales between FY22 and FY24.Icra noted: “Having seen a strong upcycle, the sector entered an equilibrium ..