Maharashtra Extends Stamp Duty Relief Period For Resale Properties
Maharashtra’s move to extend the stamp duty relief period for resale properties is seen as investor-friendly.
Real estate services firms see the Maharashtra government’s decision to extend the stamp duty waiver on resale properties as “investor-friendly”.
Earlier, if a property was resold within a year of buying, the stamp duty was calculated on the price difference between the two transactions, not on the full value. The Maharashtra legislative assembly on Wednesday passed a bill extending the relief period to three years, the Times of India and the Indian Express reported.
The move is aimed at boosting property sales and encourage construction as the sector recovers from a prolonged slowdown. According to JLL India, the step will boost housing demand from investors.
“The retail investor fraternity would make a comeback in the top residential markets in Mumbai and Pune. Residential sales have already witnessed a smart recovery during the latter part of 2021,” Ritesh Mehta, senior director and head (west, residential services and developer initiatives), India at JLL, said in an emailed statement. “The measure is likely to help in not only maintaining the growth momentum but also give an extra fillip to the sector in terms of future sales.”
Anuj Puri, chairman at Anarock Group, said the extension does help investors gain the benefit of market conditions in terms of capital appreciation, earn respectable returns and make an exit.
“...However, it is also a double-edge sword because if investor activity gains momentum, this can fuel speculation in market, which is detrimental,” Puri said in an emailed response to BloombergQuint. “For the market to remain healthy, there has to be a right mix of end-users and investors. The latter must not supersede the former. In the past, we have seen what happens when speculation gets the upper hand."