Kolkata: The State Finance Department has issued a notification that expands the limited period of SOPS to the real estate sector – 2% cut in stamp duty and a 10% reduction in the circle level – three months to January 31, 2022.
Rabat windows were originally scheduled to end on October 30 but CM Mamata Banerjee has indicated that it will be expanded after appealing by builders affiliated with the Confederation State Chapter Indian Real Estate Developer (Credii).
According to twin notices, a reduction of 10% in the rate of circle and revision of the 4% stamp duty for units that cost up to Rs 1 Crore and 5% for units that cost more than RS 1 Crore are announced in the state budget and effectively until October 30 is extended until 31 January 2022.
The industry has asked the government to extend a two-month rebate until December 31, 2021, but has not received an additional month.
“It’s very big for the industry.
This will result in a demand for the next three months and maintain the growth we have seen since July-end,” said President of Bengal Credit Nandu Belani.
More than 60% of housing sales in Kolkata occur within five months – September to January.
With SOP covering this period, the industry targets the highest sales that have ever occurred in the second half of this year (July-December).
Between July and September this year, 15,160 apartments were sold, up from 6,842 apartments sold during the period in accordance last year.
The surge in demand has also caused an increase in launch.
While only 756 units were launched in April-June 2021, the developer launched 3.128 in the next three months.
Bengal President West Bengal Sushil Mohta said he would offer great assistance to home buyers and bring more income to the state treasury.
Shishir Baijal, Chair and MD International Real Estate Consulting Company Knight Frank India, said the extension had come at the peak of an important time when the country headed to Kewali.