The rebate window was originally slated to end on October 30 but CM Mamata Banerjee had indicated that it would be extended following an appeal by builders affiliated to state chapter of Confederation of Real Estate Developers of India (Credai).
According to the twin notifications, a 10% reduction in circle rate and revised stamp duty of 4% for units that cost up to Rs 1 crore and 5% for units that cost over Rs 1 crore announced in state budget and effective till October 30 was being extended till January 31, 2022.
The industry had requested the government to extend the rebate by two months till December 31, 2021, but has not got an additional month.
“This is huge for the industry. It will generate demand for the next three months and sustain the growth that we have witnessed since July-end,” Credai Bengal president Nandu Belani said.
Over 60% of home sales in Kolkata happen in five months — September to January. With the sops covering this period, the industry is eyeing the highest ever sales clocked in second half of the year (July-December).
Between July and September this year, 15,160 apartments were sold, up from 6,842 apartments sold during the corresponding period last year. The spike in demand has also led to an increase in launches. While only 756 units were launched in April-June 2021, developers launched 3,128 in the following three months.
Credai West Bengal president Sushil Mohta said it would offer a huge relief to home buyers and bring more revenue to state coffers. Shishir Baijal, chairman and MD of international real estate consultancy firm Knight Frank India, said the extension had come at an important cusp of time as the country headed towards Diwali.