New Delhi, Aug 27 (PTI) Realty stocks on Thursday were in huge demand, rising up to 15 per cent, following the Maharashtra government’s decision to reduce the stamp duty to two per cent till December saying the move will foster demand creation and give a boost to the allied industries.
Sunteck Realty zoomed 14.61 per cent, Prestige Estates Projects 10.23 per cent, Godrej Properties 9.99 per cent, DLF 9.52 per cent, Indiabulls Real Estate 6.37 per cent, Oberoi Realty 8.28 per cent, Sobha Limited 4.12 per cent and Mahindra Lifespace Developers jumped 4.10 per cent on the BSE.
The BSE realty index was trading 7.28 per cent higher in morning trade.
The ailing real estate has welcomed the Maharashtra government’s decision to reduce the stamp duty to two per cent till December.
The state government on Wednesday decided to slash stamp duty on sale deed documents by 3 per cent from September 1 to December 31, 2020, and by 2 per cent from January 1, 2021 to March 31 2021.
Stamp duty is the transactional tax collected by the government on property purchases. Stamp duty collection is one of the largest contributors to a state’s revenues.
“CREDAI has been pursuing state governments for reduction in stamp duty since the beginning of lockdown. The move will benefit the customer and foster demand creation along with giving a stimulus to the allied industries coupled with employment generation,” CREDAI National Chairman Jaxay Shah said.
He further said that whenever there has been a reduction in the stamp duty in the past, it has only led to an increase in revenue in the government treasury.