Shares of Godrej Properties and Oberoi Realty hit new 52-week highs as Maha govt halves levies for realty sector

After the Maharashtra government cleared a proposal to cut levies on real estate by 50 per cent until December 2021, the realty stocks have started rising. With shares of Oberoi Realty and Godrej Properties hitting their respective 52-week highs, the Nifty Realty index also surged over 3.5 per cent.

Till now, 22 premiums were collected in Mumbai under various heads such as floor space index (FSI), staircase, lobbies etc. According to the experts, the decision to slash premium is likely to provide impetus to the real estate industry in Maharashtra.

“After the stamp duty cut, Naredco Maharashtra welcomes the decision of the Maharashtra government to reduce the construction premium by 50 per cent. It will give a big respite to developers as the cost of the premium as well as approval cost that contribute between 35 to 38 per cent will come down substantially,” said Ashok Mohanani, president, NAREDCO Maharashtra.