New Delhi, Aug 27 (PTI) Realty stocks on Thursday were in huge demand, closing the day with up to 10 per cent gains, following the Maharashtra government's decision to reduce the stamp duty to two per cent till December.

Shares of DLF closed 9.93 per cent higher, Prestige Estates Projects 8.07 per cent, Sunteck Realty 7.21 per cent, Godrej Properties 7.06 per cent, Oberoi Realty 6.94 per cent, Sobha Limited 6.57 per cent, Mahindra Lifespace Developers jumped 4.10 per cent and Indiabulls Real Estate 0.64 per cent on the BSE.

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The BSE realty index was 6.63 per cent higher at close of trade.  

"The standout performer was the realty sector that ended 6.6 per cent higher as Maharashtra government slashed stamp duty till December 2020," Ajit Mishra, VP - Research, Religare Broking Ltd.

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The ailing real estate has welcomed the Maharashtra government's decision to reduce the stamp duty to two per cent till December.

The state government on Wednesday decided to slash stamp duty on sale deed documents by three per cent from September 1 to December 31, 2020, and by two per cent from January 1, 2021 to March 31, 2021.

Stamp duty is the transactional tax collected by the government on property purchases. Stamp duty collection is one of the largest contributors to a state's revenues.

"CREDAI has been pursuing state governments for reduction in stamp duty since the beginning of lockdown. The move will benefit the customer and foster demand creation along with giving a stimulus to the allied industries coupled with employment generation," CREDAI National Chairman Jaxay Shah said.

He further said that whenever there has been a reduction in the stamp duty in the past, it has only led to an increase in revenue in the government treasury.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)