Maharashtra Caps Stamp Duty to ₹1,000 for Senior Citizens' Retirement Homes

According to a Hindustan Times report, the Maharashtra government has introduced a groundbreaking change in its newly unveiled Housing Policy 2025 by reducing the stamp duty for senior citizens purchasing retirement homes to a flat ₹1,000. This marks a significant drop from the earlier 5%-7% rate, based on location, thereby eliminating a major financial barrier for elderly homebuyers. 

Additionally, owners of such properties will receive property tax concessions, and developers will benefit from increased Floor Space Index (FSI), tax relaxations, and expedited clearances via a single-window system. These steps aim to make age-friendly housing more affordable and accessible across the state.

Boost to Senior Living Sector Amid Changing Demographics

The shift from joint to nuclear families has led to a growing demand for independent senior housing. Maharashtra, where senior citizens already comprise 10% of the population (as per the 2011 Census), is projected to see this number rise to 17% by 2036. In response, the government has initiated the redevelopment of old-age homes and orphanages situated on public land, integrating them with modern retirement housing schemes. This move aligns with the state’s focus on supporting the ageing population through inclusive urban planning.

Industry Impact and Future Prospects

Real estate developers have welcomed the policy, viewing it as a step forward for inclusive and regulated housing. Leading firms are planning to invest in senior housing projects, now officially recognised under the Unified Development Control and Promotion Regulations (UDCPR) as a distinct development category. 

These projects must meet certain criteria, including being located within 5 km of healthcare and public transport facilities, offering vital amenities like recreational areas, dining rooms, gyms, nurse stations, and on-call doctors. Moreover, all developments must be registered with RERA and comply with oversight by district-level monitoring bodies, ensuring quality and accountability in senior citizen housing.

Read More: SWP in Mutual Funds: A Smart Way for Senior Citizens to Get Regular Income

Conclusion 

Maharashtra’s flat ₹1,000 stamp duty for senior-living homes signals a decisive shift toward more inclusive urban planning. By easing costs for older buyers and incentivising developers, the policy removes a key barrier to age-friendly housing. If implemented effectively, it should spur growth in dedicated retirement communities and set a benchmark for other states to follow.

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