At a time when clouds of uncertainty are looming large over the markets and many business activities are witnessing a slowdown, it seems that the realty sector is defying the current trend. The sector that was passing through a tough phase for quite long, is now witnessing a sense of revival. With some crucial factors falling in place, the realty sector has changed a lot opening up great opportunities for the home buyers.
Market experts said that the reduced Stamp Duty on properties, extended time limit of Pradhan Mantri Awas Yojana (PMAY) and low levels of interest on property loans have jointly created ‘once in life time’ opportunity for buying homes. Besides, the current price levels of the property prices are further seen as icing on the cake.
Affordable and mid-segment property buyers are believed to be getting most of the benefits of these factors. Sources said that a lot of buying is happening in these segments in the city.
In an attempt to boost the real estate market which was adversely affected because of the pandemic, the Maharashtra Government had recently announced reduction in Stamp Duty for a specific period.
The Maharashtra Government had recently announced to reduce Stamp Duty on housing units from 6 per cent to 3 per cent until December 31, 2020. From January 2121 to March 2021, there will be 2 per cent reduction in the duty. Experts said that the reduced Stamp Duty is giving much needed respite to the home buyers. “It is a big saving for the home buyers and it is attracting a large number of home seekers. The move has already brought excitement in the sector and we are sure that a lot of buying will soon happen,” said the experts.
Apart from this, the Central Government had extended the Pradhan Mantri Awas Yojana subsidy scheme of upto Rs 2.67 lakh till March 31, 2021. Under the scheme, eligible buyers can avail the subsidy which will bring down cost of the property significantly.
Similarly, the interest on home loan is on an all-time low. Almost all the nationalised private banks are offering home loans at very reasonable rates. This will again reduce the financial burden on the buyer.
“We strongly believe that the buyers might not get such a palette in near futures as they are getting now. Things like rationalised pricing, lowest home loan interest rates of 6.85 per cent approximately, an extension of credit linked subsidy schemes and developers doling out lucrative schemes and along with lower Stamp Duty rates come once in a while. The home buyers should make use of this golden opportunity,” said one of the experts, who wished not to be quoted.
He also said that a buyer can save Rs 4 lakh to Rs 5 lakh while purchasing a small flat costing about Rs 40 lakh. The savings will be more if the property is big. In addition to this, there will be saving in the equal monthly installments (EMIs).