As Property Sales Rise, Stamp Duty Collections Hit a Record in Mumbai

Property registrations in Mumbai, the country’s biggest real estate market, have continued to reflect robust momentum in February, surpassing the pre-pandemic levels witnessed two years ago by a wide margin.

This is also the first time since the stamp duty reduction benefit came to an end last year that the city has seen monthly registration of over 10,000 apartments. In terms of revenue to the state exchequer, the month has recorded the best February ever with over Rs.561 crore stamp duty collection.

The country’s commercial capital witnessed registration of over 10,026 residential deals in February, showed data from the Inspector General of Registration, Maharashtra. This registration number is up 23% from January, Which itself was a 10-years record.

February 2020, the month just prior to the outbreak of the Covid-19 pandemic in India, had witnessed registration of 5,927 residential deals and the performance recorded this month has surpassed this pre-Covid level by over 70%.

“Mumbai, apart from being the country’s largest realty market, is now also one of the strongest growth markets,” said Boman Irani, president of realtors’ body Credai-MCHI. “A slew of measures like the progressive budget, availability of the lowest home loan rates and a good home-buying environment are driving this growth. We expect this uptrend to continue in the months to come and hope that the government remains supportive.”

Record-low interest rates, incentives and stable pricing is prompting robust response from homebuyers for nearly six quarters and now the fear of a price hike due to cost push or an upward revision in government rates is also pushing the sales velocity.

“We are seeing good traction in sales activity across categories and micro-markets, robust conversion of enquires into deals. It is an indication of positive sentiment combined with low interest rate and stable pricing that is translating in business momentum. With all positive factors in place, most homebuyers have realized this is the best time to buy,” said Vikas Chaturverdi, CEO at Xanadu Group, which handles sales and marketing of several developers across their portfolios.

“Both western and central suburbs of Mumbai are leading the sales activity.”

According to Irani, the Mumbai Metropolitan Region (MMR) posting sustainable growth for the last several months is extremely encouraging news for over 250 ancillary industries and job creation in general.

With the central bank maintaining its stance on low policy interest rate, and developers providing attractive offers, sales trajectory has been on the rise with monthly sales surpassing even pre-pandemic levels seen in 2018 and 2019. S-ET

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