1% surcharge can affect affordable housing in Maharashtra

1% surcharge can affect affordable housing in Maharashtra
21/02/2019 , by , in News/Views

The state government’s decision to levy 1% surcharge on stamp duty on home sales to fund transport projects has failed to cut ice with realty players, who have termed the move “unwarranted”, while expressing fears of demand slide, especially in the affordable housing segment.

The hike, aimed at funding the Metro in case of Pune and Pimpri Chinchwad, would be seen as a “significant outflow” by many homebuyers, prompting them to adopt a wait-and-watch strategy, realty experts said.

“This increase is unwarranted,” Anuj Puri, chairman of Anarock Property Consultants,” said, while expressing concerns over the fact that the move might dealt a blow to the slight rise in realty sales achieved in 2018 after a long sluggish period.

Puri said homebuyers were somewhat not concerned about transport projects as taxes were “increased on such pretexts in the past as well, without much work being visible on the ground”.

A 1% hike in stamp duty for a house costing Rs 40 lakh would translate into Rs 40,000 — an additional expense which any buyer in the category could have utilized for other purposes, the experts said. “This will definitely take a toll on the buyers’ sentiments, especially those in the affordable and mid-segment category, who are primarily dependent on home loans while making a buying decision,” they added.

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