BENGALURU: The central government will take a call in the next one week on the demand by developers that stamp duty be waived off for a short period on property purchases and RERA compliance deadlines be extended for a year, union housing and urban affairs secretary Durga Shanker Misra said.
National Real Estate Development Council (Naredco) has put forth these demands to the housing ministry at a time when Covid-19 has dealt yet another body blow to the residential real estate market with project delays seemingly inevitable as many labourers have moved back to their native villages and towns.
Construction activity is halted and even when the lockdown is lifted, questions remain as to how it can resume at full force with a withered manpower. Ongoing projects are set to be delayed between 3-15 months.
“We will let you know within a week about the demands,” Misra said speaking to developers at a webinar organised by Naredco on Friday.
The realtors are also asking for a short term waiver of stamp duty, which they say will push down the property prices and make it attractive to buyers when demand is expected to fall more. Since stamp duty is a state subject, the centre needs to consult with the states. Prices are expected to come down further as builders are loaded with huge stock of unsold invetory in a struggling market. Deepak Parekh, chairman of HDFC, said earlier this week he expects residential apartments prices to fall by 20% in the near term.
April 18, 2020