Stamp Duty Cut - Ready Properties Get Even More Attractive.

No GST, all-time low home loan rates, developer discounts make RTMI properties the pick of the season.

The reduced stamp duty charges are good news for buyers and developers as well as the state government. With no GST applicable on them, ready-to-move-in homes are the most compelling option for homebuyers in MMR and Pune in light of the Maharashtra Government's limited-period stamp duty cut. Both cities currently have a RTMI stock of ~ 33,500 units - MMR with ~18,500 ready units and Pune with ~15,000 units.

Prashant Thakur, Director & Head - Research, ANAROCK Property Consultants says, "The combination of GST exemption, reduced stamp duty and the lowest home loan interest rates in almost two decades are a strong argument now favouring ready-to-move-in homes. If we additionally factor in the ongoing incentives being offered by developers, buyers in the state focused on zero wait / instant gratification homes are at a distinct advantage.”

In the under-construction category, properties due to be completed in the next 6-7 months are the next best bet. While these are not exempt from GST, they are invariably priced 5-10% lower than their ready-to-move-in counterparts.

Another 55,750 units are expected to be completed in MMR and Pune by March 2021 - the time when reduced stamp duty rates revert to normal. Of this total supply, MMR has 32,850 under-construction units while Pune has 22,900 units.

Budget-wise Breakup of Ready Units: Of the total 33,500 ready homes in MMR and Pune presently, nearly 44% are in the affordable category priced <INR 40 lakh, followed by 26% in the mid-segment priced between INR 40 lakh to INR 80 lakh, 19% in INR 80 lakh to INR 1.5 Cr price bracket, and the remaining 11% in the luxury segment priced > INR 1.5 Cr.

- In MMR, out of the total 18,500 ready homes, approx. 46% are in the affordable segment, followed by 18% in the mid-segment, 18% in INR 80 lakh to INR 1.5 Cr price bracket and the remaining 18% in the luxury segment.

- In Pune, out of the total 15,000 ready units, 42% are in the affordable category, followed by 36% in the mid-segment between, 20% in INR 80 lakh to INR 1.5 Cr price bracket and just 3% in the luxury segment.

It is reasonable to assume that the government will be able to cover up for revenue lost in lower stamp duty and registration charges by ways of increased sales, which will be highest in the affordable and mid-income segments. The festive season is off to a good start with this latest announcement.

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