2012-13, Maharashtra Budget: Real estate sector disappoint

Maharashtra state Budget 2012-13 has managed to disappoint the real estate sector and prospective home buyers in equal measure.

5% stamp duty..!

Both contend that only the state government will benefit from the 5% stamp duty it has imposed on transactions of immovable properties. Over the last one year, a hike in property prices coupled with a rise in interest rates on housing loans, has forced house buyers to defer their plans.

Mr. Mitesh Gala, for a house, feels cheated with the state budget. “Instead of lowering the stamp duty, the state has snatched whatever small benefit we had”

Mr. Charles D’Souza, an executive in a MNC, "State government did not focus on affordable houses. We can’t afford prices quoted by private builders and expected some relief from the state”

Builders/promoter and Develpoers are unhappy that state budget has no tax concession for raw materials like cement , steel & sand.

Mr. Paras Gundecha, President, Maharashtra Chambers of Housing Industry (MCHI), “There is nothing for the real estate sector despite the fact that we are going through such a rough phase. The state just talks of affordable houses. But when it comes to action, nothing is done"

Mr. Gundecha also said,'' Delays in approvals tend to increase cost, which is ultimately borne by consumers."

Mr.  Sunil Mantri, Chairman, Indian Merchants Chamber (Real Estate Committee) said,'' Decrease in stamp duty along with removal of value added tax would have brought respite to the real estate sector."

Src: Hindustan Times.
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