New Delhi, Aug 28 : The recent decision of the Maharashtra government to reduce stamp duty has made ready-to-move-in properties more attractive in the two key property markets of Mumbai Metropolitan Region (MMR) and Pune, said a report by Anarock Property Consultants.
The Maharashtra government has announced to temporarily cut stamp duty on flats from 5 per cent to 2 per cent till December 31, 2020 and 3 per cent after that till March 31, 2021.
The report noted that with no GST applicable on them, ready-to-move-in homes are the most compelling option for homebuyers in MMR and Pune in light of the Maharashtra government’s limited-period stamp duty cut.
Both cities currently have a total ready-to-move-in inventory of 33,500 units. MMR has 18,500 ready units while Pune has 15,000 units.
Prashant Thakur, Director and Head of Research at Anarock Property Consultants said: “The combination of GST exemption, reduced stamp duty and the lowest home loan interest rates in almost two decades are a strong argument now favouring ready-to-move-in homes. If we additionally factor in the ongoing incentives being offered by developers, buyers in the state focused on zero wait/instant gratification homes are at a distinct advantage.”
In the under-construction category, properties due to be completed in the next 6-7 months are the next best bet, the report said, adding that while these are not exempt from GST, they are invariably priced 5-10 per cent lower than their ready-to-move-in counterparts.
Another 55,750 units are expected to be completed in MMR and Pune by March 2021, the time when reduced stamp duty rates revert to normal. Of this total supply, MMR has 32,850 under-construction units while Pune has 22,900 units.
Of the total 33,500 ready homes in MMR and Pune presently, nearly 44 per cent are in the affordable category priced under Rs 40 lakh, followed by 26 per cent in the mid-segment priced between Rs 40 lakh to Rs 80 lakh, 19 per cent in Rs 80 lakh to Rs 1.5 crore price bracket, and the remaining 11 per cent in the luxury segment priced over Rs 1.5 crore.
It noted that in MMR, out of the total 18,500 ready homes, around 46 per cent are in the affordable segment, followed by 18 per cent each in the mid-segment category, Rs 80 lakh to Rs 1.5 crore category and the luxury segment.
In Pune, out of the total 15,000 ready units, 42 per cent are in the affordable category.
“It is reasonable to assume that the government will be able to cover up for revenue lost in lower stamp duty and registration charges by way of increased sales, which will be highest in the affordable and mid-income segments. The festive season is off to a good start with this latest announcement,” it said.