Today, until December 31, 2021, the Maharashtra government cut premiums and levies charge on construction by 50 percent. It is expected that the move will give the real estate sector in the state a boost.
Under the new DCPR Rule 2034, the Maharashtra state government has approved a 50 percent reduction in premiums across the board for existing and new projects up to 31 December 2021.
Municipality of Maharashtra charge this premium on the Floor Space Index or FSI that is authorized to be built on a land plot.
In expediting the completion of the plant, this move will go a long way and the industry will see new business launches. The industry applauds this booster dose, making many projects feasible, and instead of making use of these advantages, we will comply with the rules laid down.
In addition, lowering premiums for new launches would support the production at the lower cost of input and there is a likelihood of lower prices for new inventories to come on the market over a period of time, said Niranjan Hiranandani, chairman at Hiranandani Communities.
In September, the Maharashtra State Government lowered the stamp duty from the current 5 percent to 2 percent by 31 December 2020 and pegged it at 3 percent from 1 January to 31 March 2021. This led to a jump in Mumbai and other major cities in property sales. This has also contributed to an increase in sales of the property in Mumbai and other major cities. Home sales in the Metropolitan Region of Mumbai (MMR) grew by a substantial 10 percent year-on-year (YoY) to 30.042 units helped by the stamp duty cut in H2 2020, a Knight Frank study said today.
From September 2020 onwards, revenue rose and grew stronger towards the end of the year. Sales jumped a whopping 80 percent YoY in Q4 2020, it said.
In addition to stamp duty reduction, several other factors supported sales growth in H2 2020, such as lower interest rates to historic lows, demand for upgrades to larger homes, Navratri-Dussehra-Diwali festive season, developers offering a host of direct/indirect discounts, and increased household savings during the lockdown, Knight Frank said.