Builders hope stamp duty cut will boost sales

Nagpur: City builders are elated over the 3% stamp duty cut affected by the state government and are hoping it will boost sale of properties that are complete or nearing completion.
Mahesh Sadhwani, Credai Nagpur president, said that it was a big boost for the realty sector,which was down since the last three to four years. “People have realized the importance of having a big home due to work from home policy. Those having one BHK are going for two BHK, two BHK people are going for three BHK. They are converting one room as office. This is the best time to buy. Rates are stable and stamp duty has been reduced,” he told TOI.
Ashok Chandak of Credai said that about three months ago, Credai had held a webinar with revenue minister Balasaheb Thorat and principal secretary (revenue) Nitin Kareer and demonstrated that cut in stamp duty would lead to more revenue for the state government. “Thorat had promised to cut stamp duty and he has fulfilled his promise. The biggest thing is that it is a blanket cut and there is no cut or classification,” he said.
Chandak further said that cut in stamp duty in London had doubled the revenue of the local body. “Same will happen in the state,” he added.
Builder Shravan Kukreja described it as a very big boost for the economy of the state. “The stamp duty is lowest in 20 years. The next three months will be best for buyers in 20 years. However, I feel that the stamp duty of Pradhan Mantri Awas Yojana (PMAY) houses should have been 1%,” he said.
Realtor TS Renu said that stamp duty was an indirect tax which is mostly to be paid initially, thereby causing an instant burden on home buyers. “With this reduction, home buyers will certainly save considerable amount as an average flat in Nagpur suburbs costs around ₹50 lakh. So with 3% reduction in stamp duty, the buyer will save ₹1.5 lakh which is a huge benifit and saving for the buyers.”