Mumbai continues to witness a rise in property registrations

Led by a multiplicity of factors, the real estate market in Mumbai continues to grow sharply. In recent months, records reveal that the city has witnessed a spike in property registrations. With low rates of home loans, reduced stamp duty and other discounts, consumer sentiment in the real estate sector has got a boost.Since February, the city has recorded more than 70% increment in property registration. This is the sixth month where the numbers look growing on a consistent basis.

In February 2021, as many as 10,059 deals were recorded in the financial capital of India. According to available data at the Inspector General of Registration Maharashtra, this is the highest number of registrations since 2021, considering the month of February. Besides, in December 2020, there were 19,552 deals in the city. This indicates as much as 204% growth as compared to the figures a year ago.

The deputy inspector general of registration of Mumbai acknowledged the fact that homeowners are in a rush to buy properties. This is evident from the situation in all the 26 offices in the city over the last few months. This trend continues to grow, backed by the efforts of the government. In the next four months, there would be no additional charges on stamp duty, so the property owners are willing to pay the stamp duty now.

The growth in real estate sales continues in February even after the stamp duty was raised to 3% from 2%. Even in January, there were 10,412 deals, marking a 69% increment in registrations. Last August, the Maharashtra government had announced that the stamp duty on registering properties would be reduced to 2%. This would be valid for transactions taking place between September and December 2020. Previously, the stamp duty was even higher, at 5%. Between January and March 2021, property owners need to pay a stamp duty of 3% on the registration of properties.

There has been a spike in deal volumes, as compared to last year. However, the reduction on stamp duty has hit the collection of revenue. Presently, it stands at INR 350 crore, against a higher figure of INR 437 crore one year back.

With the favourable announcement on the reduction of stamp duty, transactions in Pune, Mumbai and other urban zones in Maharashtra have picked up pace. Such growth in the real estate industry would gradually heal the sector back to health after the pandemic crisis.