Realty stocks spurt after Maharashtra reduces levies by 50%

Shares of four Maharashtra-focused real estate developers rose up to 3% after the Maharashtra government cleared a proposal to cut levies on real estate by 50% until December 2021.

According to the media reports, the Maharashtra government on 6 January 2021 approved the proposal to cut the premium on real estate projects by half till 31 December 2021. Developers availing of the scheme would have to pay full stamp duty and registration charges on behalf of homebuyers, the reports added.

At the cabinet meeting chaired by chief minister Uddhav Thackeray, it was reportedly decided that the urban development department will give premium concession to construction projects. Projects will have to pay full stamp duty to customers, media reports said.

It was reportedly decided at the meeting that as recommended by the Deepak Parekh Committee, a 50% discount will be given on all the various premiums levied by the state government on construction projects till 31 December 2021 and also concessions in the premiums levied by all planning authorities/local administrations at their level.

The move will help in expediting project completion and the realty industry would witness new launches.

Sunteck Realty (up 3.30%), Godrej Properties (up 2.13%), The Phoenix Mills (up 2.09%) and Oberoi Realty (up 2.01%) advanced.

The Nifty Realty index rose 2.02% to 325.05. The index has added 2.75% in two sessions.

In the past one month, the index has jumped 12.47% while the benchmark Nifty 50 index has added 4.90% during the same period.

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