The Real Estate fraternity is indebted to the State Govt and the honourable Chief Minister, Smt Mamata Banerjee for announcing further reduction on stamp duty and circle rate till September this year. The coveted extension for another six months has provided a fillip further to the real estate sector and the buyers at a time when the Reserve Bank of India has been continuously enhancing the Repo rate resulting in the rise in the Home Loan rate.
The repo rate is currently at 6.5 per cent and this has demotivated the buyers as the home loan rate has gone up. Moreover there is no relief given in the union budget to the tax payers on the principal and interest amount of the borrowed property.
So this sop would surely impact the sales of the residential units in west Bengal this year and will help keep the momentum of the growth that we witnessed in the year 2022. Besides the Cost of customer was increased due to increase in interest rate, this will be a good compensation for customers to come forward, do transactions in the financial year 2023-24 also and take advantage of the reduced stamp duty.
We estimated that the total collection of revenue to the exchequer due to the rebate on stamp duty and circle rate would cross Rs. 7200 Cr by March 2023. However with the extension till September, there will be manifold jump in the collection in the financial year 2023-24.
Further it will benefit lot of people who did the transaction of properties few years back but the sale deed was not executed .Those people will use this window and get there sale deed executed. A win-win situation for all stake holders.
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