Mumbai, suburbs record 2,100 property deals in a month after lockdown
Publish on : 2020-06-27 11:44:18
MUMBAI: After nearly two months’ pause due to the lockdown, the registration offices in Mumbai and suburban localities have recorded around 2,100 property transactions in about a month, fetching the state government Rs 105 crore since offices were reopened on May 18.
Though the numbers are still below average, the bounce back has been a surprise given the ongoing uncertainty over economic growth.
Stamp duty and registration offices were shut since March 25 after the nationwide lockdown was announced and resumed working only on May 18.
According to stamp duty department officials, most of these deals are sale transactions and some are for conveyance and release deeds.
On an average, 5-6 deals were registered during the first week of reopening but now offices are witnessing up to 125 deals a day.
“The registration activity was already affected 15-20 days before the lockdown as most people were not keen to visit offices for conclusion of deals due to coronavirus,” said Shridhar Dube-Patil, deputy inspector general of registration, Mumbai division. “Numbers of registrations are steadily now, going up over the last one month, and we hope to see more traction,” he told ET.
Out of total deals recorded so far, 365 documents were registered across five offices in the city, while over 1,722 transactions were registered across 21 sub-registrar offices in Mumbai’s suburban localities.
The numbers indicate that transactions are picking up in relatively affordable locations.
On a normal working day, Mumbai registration activity generates revenue of around Rs 25-30 crore for the state government. Stamp duty collections during January and February stood at around Rs 600 crore each.
The state government had decided to open all 26 offices of Mumbai division on May 18 but following the directives regarding containment zone restrictions, only five offices were kept operational initially.
As of now, all 26 offices across the city and suburbs have resumed full operations.
According to industry experts, some of the deals registered after reopening may have already been finalised earlier and both buyers and sellers may have been waiting for sub-registrar offices to reopen.
Some deals may have been the result of discounts or incentives offered by developers for a limited period, they said.
Following the announcement of lockdown in March, the Maharashtra government had decided to keep ready reckoner rates unchanged for the current financial year in the backdrop of the current pandemic.
In the beginning of every financial year, based on the market dynamics, the government's revenue department determines these rates that are used as a base price for calculation of stamp duty.