Owing to record drop in interest rate and reduction in stamp duty and circle rates in select cities, demand for residential real estate has gone up significantly in recent months. This has also led to a rise in women homebuyers who play a vital role in decision-making during the home buying process.
According to a recent survey by real estate consultant ANAROCK, most Indian women now prefer investment in real estate over investment in gold, stocks or even fixed deposits. The survey notes that women’s preference for real estate has risen post Covid-19 – from 57 per cent votes in the pre-pandemic survey to 62 per cent in the current edition.
In order to encourage more women to become property owners, most of the financial institutions have differential pricing, which is lower for women home buyers. Many banks and housing finance companies (HFCs), including State Bank of India (SBI) offer a concession of 5 basis points where women are the first applicants. On International Women's Day, the State Bank of India (SBI) offered further reduction of interest on home loan rates to women borrowers. "On Women's Day, we make it special with an additional concession of 5 bps* to women borrowers and interest starting at 6.70%* onwards," SBI said in a tweet.
In the current times, various government policies too support women homeownership. For instance, to avail homes under the government’s flagship scheme Pradhan Mantri Awas Yojna (PMAY), homes have to be mandatorily registered either in a woman’s name or with women as co-owners.
The Maharashtra government too in their budget for 2021-22, presented on International Women's Day, offered one per cent concession in stamp duty if property is transferred or registration of sale deed is in a woman's name.
Here are few comments from real estate experts on the 1% concession in stamp duty for women home-buyers offered by Maharashtra Government in the State Budget 2020-21:
Head - Marketing & Sales, Transcon Developers
"Women have long been recognised as an important part of the decision-making when it comes to selecting a home. Today, Women are independent, empowered, educated and employed. The state acknowledging this and making way for women to be more empowered is a great move in the right direction. The announcement in the State budget on reduction in stamp duty for women homebuyers has come as a perfect celebration for Women's Day which will encourage them to invest in real estate."
Mr. Himanshu Jain
VP - Sales, Marketing & CRM
Satellite Developers Private Limited (SDPL)
"The State Government has taken measures to encourage women to invest in real estate as they will be providing concession on stamp duty if any house is purchased solely in the name of the woman. It is a pleasant coincidence that the measures given to women in real estate has come on the eve of Women’s Day."
Mr. Pritam Chivukula
Co-Founder & Director, Tridhaatu Realty
Hon. Secretary, CREDAI MCHI
"The reduction in stamp duty for women is a welcome move on the eve of Women's Day. This will encourage the women homebuyers to buy their dream home."