Property registrations in Mumbai rose 114% during stamp duty cut period – ET Realty

Property registrations in Mumbai rose 114% during stamp duty cut period – ET Realty

Ever since the expiry of the stamp duty cut period from 1st April onwards, there has been a marked drop in property registration numbers.

Led by the stamp duty reduction benefit, real estate registrations in Mumbai, the country’s largest property market, witnessed a 114% on-year growth between September 2019 and March 2021 at 80,718 deals, showed the data from Inspector General of Registration (IGR), Maharashtra. The seven-month period saw as many as 80,718 properties registered in Mumbai alone.

“Despite the stamp duty cuts in this period, the state government collected almost the same volume of registrations revenue as it did last year in the same period. The total revenue collected stood at Rs 2,914 crore between September 2020 to March 2021 period, while it was Rs 2,958 crore in the corresponding period a year ago,” said Prashant Thakur, Director & Head – Research, ANAROCK Property Consultants.

The increased sales volumes aided by the stamp duty cut helped the government avoid severe revenue loss. Ever since the expiry of the stamp duty cut period from 1st April onwards, there has been a marked drop in property registration numbers. Besides the expiry of the stamp duty cut period, the second Covid19 wave and ensuing restrictions aimed at curtailing the city’s caseload have contributed towards the declining numbers.

According to him, the stamp duty cut significantly stimulated housing demand in the city. The government may do well to consider extending it to keep the property sales momentum – and registrations revenue – going. It is an apt time to consider such a move as the second wave has proved to be far more serious than the first one.

Overall, the housing sector is better equipped this time around as more developers have developed digital marketing capabilities and the government has allowed construction activities to continue. However, the April-June quarter will certainly be impacted by the rapid spread of the virus. Already, restrictions on interstate movement and the call to steel manufacturers and fabricators to allocate their oxygen supplies to the hospitals have put pressure on the supply chain.

Amid these challenges, the stamp duty cut period showcased that housing demand in the financial capital is very healthy. Industry bodies are campaigning with the state government to ensure that this demand is harnessed to everyone’s benefit.

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