Some states may cut stamp duty rates to push realty sales: Anarock
Chennai: In order to boost real estate transactions during the festive season, some states are planning to cut stamp duty rates and registration charges.
Maharashtra and Karnataka are mulling a reduction in stamp duty and registration charges this festive season, according to Anarock Property Consultants.
Stamp duty charges in Karnataka are 5 per cent for properties costing more than R 35 lakh, 3 per cent for properties priced between Rs 21 lakh to Rs 35 lakh and 2 per cent for properties up to Rs 20 lakh. A lower stamp duty for affordable properties was announced in the last state budget and it might be extended to properties above Rs 35 lakh as well.
In Maharashtra, stamp duty charges are 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.
Stamp duty rates in other major states largely lie between 5-8 per cent, but states like Delhi, UP, Rajasthan, Punjab and Haryana offer relaxation of 1 -2 per cent in stamp duty for women buyers.
“To ease inventory pile-up and cost overruns, many players have already topped off discounts with added incentives such as booking amount refunds, statutory fees waivers, cash-back schemes, easy payment structuring and assorted freebies. A stamp duty rate cut could push sales into the green during the festive season,” said Anuj Puri, chairman, Anarock Property Consultants.
In previous unprecedented times of extreme market stress – such as post structural reforms like demonetisation and RERA – some state governments had given concessions to boost their sluggish real estate markets. In FY 2017-18, the Haryana government slashed circle rates by 3-8 per cent while Maharashtra kept their ready reckoner rates unchanged.