Mumbai’s Stamp Duty Kitty Swells in May

Mumbai, the country’s largest and most expensive real estate market, continued its record-setting spree by scaling a new peak in terms of stamp duty collection for the month of May despite higher mortgage rates and property prices. While the series of interest rate hikes in the last one year and steady rise in housing prices has been stretching homebuyers’ affordability, the demand continues to be firm. The growth in revenues was on account of increase in both mid-income and higher-value property transactions. The state exchequer’s revenue from stamp duty collections witnessed a 14% rise in May from a year ago to around ₹827 crore with less than 0.5% lower registrations at 9,786 deals, showed data from the inspector general of registration, Maharashtra. While majority of the properties registered in May were in western suburbs constituting 58% of the market share, sales in south – Mumbai registered a significant uptick with 10% registrations during the month as against 5% a year ago. “The demand continues to be solid as most enquiries are translating into actual sales in a relatively shorter lead time,” said Jaxay Shah, CMD, Savvy Group.

“While prices are steady and have been showing an uptick in the last couple of months, the right mix of location and configuration is ensuring conversion. The change brought in by the pandemic in terms of preference for home buying has managed to keep the sentiment robust.” The company has forayed into the Mumbai market with plans of two developments, of which the Andheri project was launched recently and has received robust response. “If we analyse this demand, buyers are willing to pay a significantly higher price towards homes in the last one year due to these changes as compared to September 2020, when stamp duty rebates were introduced, which can be dubbed as a turning point for residential markets in Mumbai,” said Shishir Baijal, CMD, Knight Frank India. Share take-up for properties larger than 1,000 sq ft rose to 24% during the month from 18% a year ago. S-ET Image Source : Google

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