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Home >Markets >Stock Markets >Realty stocks surge after Maharashtra cuts levies on real estate projects by 50%

Shares of realty firms rose up to 8% after the Maharashtra government cleared a proposal to cut levies on real estate projects by 50% until December 2021.

Shares of Oberoi Realty jumped 8.2%, Sunteck Realty rose 5.8%, Godrej Properties gained 4.5% and The Phoenix Mills advanced around 3%. The Nifty Realty index rose 2% to 325.00.

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In yet another attempt to boost real estate demand, the state cabinet, in a meeting chaired by chief minister Uddhav Thackeray, approved a 50% reduction in premiums for ongoing and new real estate developments undertaken up to 31 December. Developers availing of the scheme would have to pay full stamp duty and registration charges on behalf of homebuyers.

Premium refers to charges that are levied by a state with respect to approvals for initiating, progressing, and completing the area in a project.

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

Residential sales in Mumbai, India’s most valuable property market saw a sharp surge in December. The Maharashtra government had in August, stamp duty rates were reduced from 5% to 2% till December 2020 and 3% till March 2021

In the past one month, the Nifty Realty index has jumped 15.06%, while the benchmark Nifty 50 index added 6.24% during the same period.

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