NAREDCO Urges Maharashtra Government to Reduce Stamp Duty and Incentivize Green Building Buyers

In a significant development aimed at boosting the real estate sector in Maharashtra, the National Association of Real Estate Developers Organisation (NAREDCO) has proposed a reduction in stamp duty and incentives for green building homebuyers. A delegation from NAREDCO Maharashtra, NAREDCO Pune, and NAREDCO Vidarbha recently met with Maharashtra's Revenue Minister, Chandrashekhar Bawankule, to present a set of recommendations that could potentially drive property transactions and promote sustainable construction in the state.

Key Proposals Submitted to the Government

  1. Reduction of Stamp Duty to 3% for a Year: To encourage more property transactions, NAREDCO has urged the government to temporarily reduce stamp duty to 3% for a year. Currently, the stamp duty in Maharashtra ranges between 5% and 7%, depending on the location. Women homebuyers already enjoy a 1% reduction in stamp duty, but NAREDCO believes that a further reduction across the board would significantly enhance affordability and spur demand in the real estate market.
  2. Incentives for Green Building Homebuyers: In line with promoting eco-friendly construction practices, NAREDCO has proposed special incentives for homebuyers who purchase properties in certified green buildings. These incentives could encourage developers to adopt sustainable building practices and increase the demand for environmentally responsible housing.
  3. Stabilization of Ready Reckoner Rates: Another key proposal put forth by the delegation is to keep the land rates in the Ready Reckoner unchanged for the financial year 2025-26. The Ready Reckoner rate is a benchmark value used for property transactions and is crucial in determining stamp duty and registration charges. NAREDCO believes that stabilizing these rates will provide much-needed predictability for developers and homebuyers alike.

Addressing Sector Challenges

The real estate sector in Maharashtra has faced multiple challenges in recent years, including rising construction costs, fluctuating land rates, and a slowdown in demand. By implementing NAREDCO’s recommendations, the government could potentially stimulate growth, attract new investments, and create a favorable environment for both developers and buyers.

Positive Impact on the Housing Market

Reducing stamp duty could lower the overall cost of homeownership, making it more accessible for first-time buyers and investors. Additionally, incentivizing green buildings aligns with global trends of sustainable living and climate-conscious construction, helping Maharashtra position itself as a leader in green real estate development.

NAREDCO’s Vision for Sustainable Growth

NAREDCO’s efforts reflect a broader vision to not only revive the real estate sector post-pandemic but also ensure its growth is sustainable and eco-friendly. The organization has consistently advocated for policies that benefit developers, homebuyers, and the environment.

Conclusion

The proposals submitted by NAREDCO hold the potential to transform the real estate landscape in Maharashtra. A temporary reduction in stamp duty, coupled with incentives for green building purchases, could provide the much-needed boost to property transactions while promoting sustainable urban development. The government’s response to these recommendations will be keenly awaited by stakeholders across the real estate industry.

If implemented, these measures could usher in a new era of growth, affordability, and sustainability in Maharashtra’s real estate sector.

Posted by houzyy news desk on Jan. 15, 2025

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