“We have decided to support the real estate industry so that the slowing market could be revived. There is also an opinion that such a move may deprive the government of huge chunk of revenue. The final decision is yet to be taken,” said the official on condition of anonymity.
Maharashtra government earns Rs15,000-17,000 crore each year in way of stamp duty and registrations.
Pankaj Kapoor, MD at Liases Foras said the government has already done a lot of damage for the property market. “In last three years, cumulatively RR rate has rose almost by 60%. It’s not the developer but the government to be blamed for soaring property prices and unproductive market. Once the RR rate is hiked, then it becomes the base price,” he pointed out.
Kapoor said it’s high time the government take a step further and slash the RR rates. “That will ease the property market in real sense. Currently, with the developers constantly increasing prices and the government doing the same with RR rates, the property market has turned unproductive,” he added.
Shailesh Puranik, MD, Puranik Developer welcomed the government move. He said the stamp duty has already been increased and increasing the RR rates doesn’t make sense. “There is no movement in the market. The government decision will bring the cheer in the market,” he said.
He further said that RBI has also made some positive changes in the lending calculations formula that will also give more relief further. “As a result, the interest rates of the home loan and other loans are likely to come down. It will be a double bonanza for the consumers and developers. By this decision, the positivity will be enthused in the market,” Puranik added.