Key points:
- The reduction of premiums will be applicable till 31 December, 2021
- The Maharashtra government earlier slashed the stamp duty charges to boost real estate sector hit by coronavirus pandemic
To boost real estate sector hit by the coronavirus pandemic, Maharashtra government on Wednesday decided to reduce all premiums related to the sector by 50%. It will be applicable till 31 December, 2021.
According to the revised scheme, builders will have to pay premiums based on the 2019 ready Reckoner (RR) rates or the 2020 rates, whichever is higher.
All projects which want to avail of the premium concession will have to pay full stamp duty for the customers till 31 December. High premium puts a financial burden on developers leading to higher costs for the homebuyers. The reduction in premium cost will help softened prices and renewed buyers’ interest, said experts. The concession will be considered for premium rates whichever is higher, 1 April 2020, or the current annual market price table.
The coronavirus pandemic has severely affected the real estate sector last year. With several measurements from the central government, state government and the Reserve Bank of India, the real estate sector saw an uptick in the state. The reduction in premium will benefit all stakeholders — developers in terms of the reduced construction cost for projects. For customers, it will help reduce prices and boost demand. For the government, it will help increase premium and levy collection as the move is likely to revive stuck project
