Maharashtra cabinet on Wednesday cut down the premiums charges on construction by 50 per cent till December 31, 2021.
Maharashtra government while giving a reduction in premium charges -- a 50 per cent benefit to developers -- put one major condition that the developers who avail this scheme benefit will not charge the stamp duty and registration fees from buyers of this project.
“It is the win-win situation for the buyers and developers,” said Shiv Sena minister.
The move is expected to give a boost to the real estate sector in the state.
The state government has approved a reduction in premiums by 50 per cent under the new DCPR rule 2034 across the board for on-going and new projects up to December 31, 2021.
Municipalities charge this premium on Floor Space Index or FSI which is construction allowed on a plot of land.
Maharashtra government had appointed Deepak Parekh committee to study the real estate sector and recommend suggestions to boost the property sector and economy as well.
Farshid Cooper, MD, Spenta corporation said, this is a very encouraging announcement at the start of the year by the Maharashtra Government.
“The lockdown had worsened the situation and the liquidity crisis in the real estate industry. The department’s proposal to provide discounted premiums of 50% on all new and on-going projects will go a long way to ease the liquidity constraints faced by the sector.
This will boost new launches in the market and lead to a reduction in the project cost for developers. The stamp duty reduction helped the sector regain from the pandemic with property registrations rising in the state and now with lesser premiums, it will provide great impetus to the business. Homebuyers should definitely consider this as a golden opportunity to buy their homes," he added.
The State Government had, in September, lowered stamp duty from the existing 5 per cent to 2 per cent till December 31 2020 and pegged it at 3 per cent from January 1 till March 31, 2021. This led to a jump in property sales in Mumbai and other major cities.