The Department of State’s Finance has formally announced an extension of budget grants for a finite duration in the real estate arena. The revised regulations will now include a 2% reduction in stamp duty, along with a 10% decrease in circular rates, valid for three months stretching until January 31, 2022.
Originally, the refund initiative was set to conclude on October 30. However, following an appeal from developers represented by the Confederation of Real Estate Developers of India (Credai), Chief Minister Mamata Banerjee signaled a continuation of the program.
According to revised notifications, a 10% reduction in circle rates and an updated stamp duty of 4% for properties priced up to Rs 1 crore, along with 5% for properties exceeding Rs 1 crore, were to be effective only until October 30. This timeline has now been successfully pushed back to January 31, 2022.
Industry professionals previously urged the government to prolong the rebate for two additional months, with a desired end date of December 31, 2021. The government's latest decision therefore extends the relief period through January 31, 2022.
Statistics reveal that more than 60% of home transactions in Kolkata transpire within a five-month period, specifically from September to January. With opportunities spread throughout this timeframe, notable sales records in the latter half of the year from July to December can be observed.
In the current year, between July and September, approximately 15,150 apartments were sold compared to only 6,842 in the same timeframe last year. This resurgence in demand has rendered a significant rise in the number of project launches—showing a stark contrast to the mere 756 units introduced by developers in April to June 2021, which escalated to 3,127 units in the following quarter.
Nandu Belani, the President of Credai Bengal, expressed that the extended rebate is crucial for the industry, projecting it will drive demand over the coming months while further supporting the recovery seen since the end of July.
In addition, Shishir Baijal, President and CEO of the esteemed international real estate consulting firm, Knight Frank India, remarked that this extension is timely, coinciding as it does with the festive season of Diwali. Similarly, Credai West Bengal President, Sushil Mokhta, emphasized that this measure will further aid home buyers while also augmenting revenue for the state coffers.