By Accommodation Times Bureau
It will affect the overall sentiment of the realty market
Mr. Vishwajeet Jhavar | CEO, Marvel Realtors
“The move will generate two types of effect. While it will have marginal effect in the main cities, areas in the buffer zone or fringes will certainly be affected since this will be an addition to the existing VAT and several other taxes incurred. With such policies / laws amended from time to time, decision-making becomes a challenge. Although we don’t believe this move will affect our segment of high-end homebuyers, it would certainly affect the overall sentiment of the realty market”.
Any further increase in Stamp Duty is likely to dampen the confidence of the buyer
Mr. Shrinivas Rao, CEO-Asia Pacific, Vestian Global
In India, Stamp Duty for residential properties varies across states and is generally in the range of 3.5 – 8% of the total sale price of the property and is payable at the time of possession. Stamp Duty alone does not impact real estate decision; however, in the prevailing high inflation environment, any further increase in Stamp Duty is likely to dampen the confidence of the buyer.
Increase in Property tax and stamp duty tend to shift market towards leave and license sector
Mr. Sanjeev Malik Chief Executive Officer, Soham World.
The hike in property tax and stamp duty at this point in time is definitely going to negatively affect both the property selling and rental market. At current price levels, combined with high interest rates and slower economic growth, people will find this increase as further squeeze on their home buying budget. The same factors might lead to property owners reducing the rentals on their property to absorb a bit of the hike in the stamp duty on leave and license agreements. The increase in both property taxes and stamp duty tends to shift the market favourably towards the leave and license sector.
In this case neither has been spared, so people will opt for the lesser pinching of the two, i.e. they will opt for more leave and license transactions.