CREDAI Andhra Pradesh Urges for Stamp Duty Cut to Boost Realty.

The Confederation of Real Estate Developers Associations of  India(CREDAI)Andhra Pradesh has urged the government to take steps to reduce the registration stamp duty from 7.5% to 2% to help the real estate sector which is reeling under the impact of COVID 19.

This move would benefit the homebuyers, and they would be able to purchase new properties with ease. In the process, the state government would benefit from increased revenue. The real estate sector would also get a boost once the state reduces the property stamp duty.

The President of CREDAI further pointed out that back in 2009, the stamp duty was reduced to 2% from 7.5%. This revised rate was in place for two years, amidst a global economic crisis.

The decision helped real estate sector as buyers came forward to purchase flats and it pushed the growth of the economy. With the pandemic still taking its toll on finances, homeowners with reduced purchasing power would benefit from the reduced stamp duty. At the same time, it would strengthen the real estate sector.

Members of CREDAI also added that this reduction would boost the same of flats as well as associated products in Andhra Pradesh’s towns and cities. In the process, this would increase the revenue generated through GST.

In this context, it should be noted that the middle-class property buyers are saddled with an increment in the prices of steel and cement. In the last few years, prices of cement increased to INR 150 from INR 100 per bag. This resulted in an increase in the prices of flats by INR 100 per square foot.  All these factors led to an increment in property prices. With reduced stamp duty rates, homeowners would be at ease while purchasing new properties.