The restricted financial capability of individuals has adversely affected the real estate sector. To boost the sector’s growth in the wake of the slowdown, the state government reduces expenditures on stamp duty for registration of property to one percent from the current three percent in urban areas until December 2020. This provides an opportunity for buyers to purchase their dream home at a significant price value.
Stamp duty is the percentage of the property value (transactional tax), which buyers have to pay while registering a property transaction. To acquire a legal sanction to use the property, one is liable to pay the stamp duty and registration fees on it. The amount collected by the government on property purchases is an excellent source of revenue.
Acknowledging the impact on real estate due to lockdown, this initiative will undoubtedly stir up the demand for homes and boost sales. The concessional rate will be applicable to properties within the urban areas to promote affordable housing. This attractive incentive will encourage buyers to purchase the property soon as this is a direct financial saving for them. For example, if you buy the home worth RS.40 lakhs, the stamp duty comes out to be RS. 5 lakhs, but after the reduction on stamp duty announced by the state government, it will now cost only RS. 4.20 lakhs. This means a total savings of RS. 80 thousand for the home buyers.
The recent cut in stamp duty is a welcoming move that will boost the buyer’s sentiments and help revive sales and the economy. As per the facts, the property deals every month sums up to one thousand crores in Indore. More people will invest in this sector due to the reduction in stamp duty on urban property transactions, and the sales will increase to 1.5 times.
People really seem interested in residential projects in Indore because it is gearing up to be a Smart Metro City in the upcoming years. With the latest developments, Indore has many residential areas that offer you the best of both worlds. Bicholi Mardana, one of the most sought-after locations in Indore, tops the list. The place deserves a special mention as it is removed from the din of the city yet in close proximity to all its important destinations.
Lowering down the stamp duty from three percent to one percent in urban areas is a fantastic move by the state government to provide relief and promote its revival.
Real estate is one of the most globally recognized sectors which provides maximum employment. According to the experts, the recent reduction in stamp duty will definitely increase sales and create more jobs. Kudos to the government for this positive measure to boost the stagnant real estate market.