How the stamp duty cut is pushing a real estate recovery

Sales and registrations are almost at pre-Covid-19 levels in Maharashtra, a study shows

Samar Srivastava
Published: Oct 1, 2020 03:25:21 PM IST
Updated: Oct 1, 2020 04:04:23 PM IST

After studying law I vectored towards journalism by accident and it's the only job I've done since. It's a job that has taken me on a private jet to Jaisalmer - where I wrote India's first feature on fractional ownership of business jets - to the badlands of west UP where India's sugar economy is inextricably now tied to politics. I'm a big fan of new business models and crafty entrepreneurs. Fortunately for me, there are plenty of those in Asia at the moment.

It's still early days but Maharashtra's cut in stamp duty from 5 percent to 2 percent seems to have done the trick. While realizations are down, sales and registrations are almost at pre-Covid levels. According to Propstack, a real estate data and analytics platform the average ticket size stood at Rs1.5 crore. The decrease in stamp duty could help developers clear unsold inventory that is already completed. It remains to be seen if the momentum is sustained after 31 March when the duty cuts lapse.

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