Latest News | Reduce Stamp Duty to Boost Real Estate Demand: NAREDCO Urges UP CM

Noida (UP), Dec 14 (PTI) The Uttar Pradesh unit of apex realtors' body NAREDCO on Monday urged state's chief minister Yogi Adityanath to reduce stamp duty to boost demand in the real estate sector, which has come to a standstill due to the COVID-19 pandemic.

The National Real Estate Developers Council (NAREDCO), which has around 250 developers as members in the state, also cited reduction in stamp duty in Maharashtra this year which has led to a growth in demand in the sector.

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"We would like to bring to your kind attention that due to the pandemic and lockdown, real estate activities have almost come to a standstill. Real estate is one of the key sectors which directly or indirectly connects with 275-plus industries and second most employment generation sector after agriculture in India," NAREDCO UP president R K Arora said in a letter to the chief minister.

"The government of Uttar Pradesh, under your dynamic leadership, is taking required measurer to help the sector recover from current crisis. We will, therefore, recommend for reduction in stamp duty charges in Uttar Pradesh to boost the demand in the real estate sector," Arora said.

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Moreover, he said, due to the "operational constraints" in all areas of homebuying due to the COVID-19 pandemic and consequent lockdowns, the real estate industry has seen a "sharp decline" in property sales.

The state government has over the past years brought various necessary changes to the sector which have proven beneficial for the industry, he said while lauding the government for "progressive policy initiatives".

Citing reduction of stamp duty in Maharashtra, he said, such measures will also help flat buyers to invest in real estate sector as interest rates on home loans are at an all-time low.

"This data is very encouraging looking at the complete halt on all the activities due to lockdown. Real estate sector is directly and indirectly connected to nearly 275-plus industries like cement, tiles, steel, wires and cables, elevators etc and is second most employment generator after agriculture," the letter stated.

"Revenue generation in real estate sector benefits many industries, which will create multiplier effects for all the stakeholders," the letter said, adding that news reports suggest the Karnataka assembly has also passed the bill to reduce stamp duty on flats.

(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)