Maharashtra slashes premiums for real estate sector by 50%

The Maharashtra government has slashed premiums and levies charged on construction by 50% till December 31 2021, an initiative expected to boost the real estate sector in the state and city. Real estate developers feel that the state government's decision will uplift the real estate industry which has been affected by months of lockdown and subsequent decline during the last year. Omprakash Deshmukh, Inspector General of Stamps and Registration, stated that it would give a strong impetus to the sector and is a relief to customers as one of the GR clauses states that builders will have to pay the entire stamp duty and now the move will positively impact the market and buyers will increase. Suhas Merchant, president, Credai Pune termed the decision as a welcome step as it can provide great relief to cash-stressed real estate projects. Rohit Gera, MD of Gera Developments, said that the move to reduce the premiums will provide respite to cost burdens for developers, thereby spurring on more supply at lower prices. It is, however, important to realize that the charges paid for approvals include development and other charges under other heads. Nitin Gupta, senior VP, sales, marketing and CRM, Mantra Properties, said that with reduced stamp duty charges and now this rationale by the government brings in great relief to the developers wherein ever-increasing costs of construction can be offset to an extent.