Maharashtra stamp duty cut: Mumbai real estate developers must now do their bit
The state government has given a helping hand to the industry by reducing the stamp duty rate from 5 percent to 2 percent until December 31. Now property developers must end their hide-and-seek strategy on pricing and discounts.
In May 2020, I wrote a column that recommended real estate developers to be bold and go public with their discounts. The reason for that view was simple: as someone who tracks pricing of various projects in Mumbai, it was known to me that prices for many projects had fallen and discounts were being offered in abundance. The only problem was that customers who were looking to purchase real estate weren’t aware of these discounts.
The discounts by developers were so discreet that even their prospective customers didn’t know about it. Whether the quantum of discounts would have been enough is debatable but it is undeniable that in the interim the situation for developers worsened further.