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Over 70% people ready to buy property if stamp duty reduced

Kunal Kumar | 2020-09-25

More than 70% respondents in a recent Magicbricks poll said they would buy a house if stamp duty charges are reduced in their states. Just 26% said that it will not change their buying decision.

Stamp Duty is payable at the time of registration of a property. These charges vary from 5-7% across states in India. This is an addition to the total cost that a customer pays when he buys a property. In the past also, both consumers and developers have been asking for reduction in these charges, since they add a significant amount in their property buying expense.

Currently, the real estate sector has been hit hard due to the COVID-19 pandemic and both the government and real estate stakeholders are exploring options to boost a weak demand. Developers have been asking the government to bring down the taxes and take initiatives to push up the demand, following which the Ministry of Housing and Urban Affairs has given its suggestion to state governments to reduce stamp duty charges as this will improve buyers sentiments.

The Maharashtra government has already reduced stamp duty by 3% from September 1 to December 31, 2020, and by 2% from January 1 to March 31, 2021. The Housing and Urban Affairs Secretary, Durga Shanker Mishra, recently told the media that, We had given suggestions to all the states to reduce the charges. Maharashtra government has done it. We will pursue with other states as well. It is a good step by the Maharashtra government. It will have a positive impact on cost reduction.