In a major boost to the real estate sector in the state, Maharashtra government on Wednesday announced a cut in stamp duty and other levies for buying and selling of properties in urban and rural areas.

The rate has been cut for two periods. One till December 31, 2020 and the other till March 31, 2021.

The government has cut stamp duty rates from 5 per cent now to 2 per cent in urban areas of the state till December 31 and 3 per cent till March 31, 2021. Urban local body tax has been retained at 1 per cent.

Stamp duty rates have been cut from 4 per cent to 1 per cent in rural areas till December 31 and 2 per cent till March 31, 2021.

Property developers cheered the announcement and said it would boost the demand for residential apartments and sales.

"It will hasten the demand for apartments and persuade buyers to buy homes . So far, many were postponing their buying. The government announcement will make them take a decision," said Niranjan Hiranandani, managing director of Hiranandani Communities,

Vikas Oberoi, chairman and managing director of Oberoi Realty, said, "I think this is a bonanza for buyers. We will see a huge surge in buying. There is tremendous pent up demand. People have been waiting for something like this. Now is their chance."

Jaxay Shah, chairman of Confederation of Real Estate Developers Association of India (Credai) said the body had been pursuing the state governments for a reduction in stamp duty since the beginning of the lockdown. "The move will benefit customers and foster demand creation apart from giving a stimulus to the allied industries, coupled with employment generation . Whenever there has been a reduction in the stamp duty in the past, it has only lead to an increase in revenue in the government treasury," he said.