Maharashtra Government Announces Super Offer... When Will It Come to Tamil Nadu?
Maharashtra Government Announces Super Offer... When Will It Come to Tamil Nadu?
To boost the real estate sector, significantly affected by the lockdown restrictions in India, the Maharashtra government has announced a 50 percent reduction in all premium fees.
Financial Burden
Generally, these premium fees are paid by construction companies to the state government. However, this financial burden is ultimately passed on to home buyers. Considering this, the Maharashtra government’s reduction of premium fees by 50 percent is expected to significantly lower home prices.
Maharashtra Government's Announcement
Additionally, the Maharashtra government has announced that this offer will be in effect until December 31, 2021. This announcement is anticipated to be a major benefit to the state’s real estate sector.
Impact on Real Estate Sector
In 2020, the real estate sector was severely affected by the COVID-19 pandemic and lockdown restrictions. However, when lockdown restrictions were eased and festive season offers were announced, real estate business picked up across the country. Yet, it faced a decline again in the following months.
Central Government and Reserve Bank's Role
The central government has also announced several development schemes and incentives to put the real estate sector back on a growth path and to create numerous job opportunities in this sector. Similarly, the Reserve Bank's announcement of interest rate cuts has led to home loans being offered at a 15-year low-interest rate.
22 Categories of Premium Fees
In India, compared to other states, real estate sectors in Maharashtra pay significant amounts in premiums across approximately 22 categories. When this amount is reduced by 50 percent, it will undoubtedly result in substantial changes in real estate prices.
Will Similar Announcements Come to Tamil Nadu?
Will similar announcements be made to encourage the real estate and construction sector in Tamil Nadu?