The Department of State’s Finance has issued a notice extending budget grants for a limited period in the real estate sector. A 2% reduction in stamp duty and a 10% circular rate reduction) for three months until January 31, 2022.
The refund process was originally scheduled to end on October 30. However, CM Mamata Banerjee indicated that it would be extended following an appeal from developers affiliated with the Confederation of Real Estate Developers of India (Credai).
According to the double notifications, a 10% reduction in circle rate, a revised stamp duty of 4% for units upto Rs 1 crore and 5% for units over Rs 1 crore announced in the state budget was valid until October 30 and now is extended until January 31, 2022.
Previously the industry experts had asked the government to extend the rebate by two months until December 31, 2021. But now the government has extended the rebate until January 31, 2022.
More than 60% of home sales in Kolkata take place in five months, i.e. from September to January. With distributions covered over this period, the industry points to the highest sales recorded in the second half of the year (July-December).
This year, between July and September about 15,150 apartments sold against 6,842 apartments sold in the corresponding period last year. The recovery in demand has also led to an increase in the number of project launches. While only 756 units launched in April-June 2021, the developers launched 3,127 units over the next three months.
Credai Bengal President Nandu Belani said, it is very important for the industry. It will generate demand over the next three months and support the growth we have seen since the end of July.
Shishir Baijal, president and CEO of international real estate consulting firm Knight Frank India, said the extension has come at the right time since we are approaching Diwali. Credai West Bengal President, Sushil Mokhta said it would bring more help to home buyers and bring more revenue to the state funds.