Mumbai property registrations see sharp recovery in October; up 36% YoY
Publish on : 2020-11-03 21:54:05
n an indication of a robust revival from pre-Covid level, the registration of apartments rose 34% from levels witnessed in February, showed data from the office of the Inspector General of Registration Maharashtra.
Residential property sales in Mumbai, the country's hottest property market, has registered a sharp recovery with an over 36% on-year jump in October led by the stamp duty reduction and discounts offered by realty developers.
In an indication of a robust revival from pre-Covid level, the registration of apartments rose 34% from levels witnessed in February, showed data from the office of the Inspector General of Registration Maharashtra. The October performance is the fourth highest monthly sales registration volume and value since April 2013.
"The registration numbers highlight that the combination of three factors - a discount of 5 to 15% by developers, stamp duty reduction by the state government and low interest rate regime is certainly giving a boost to sales this festive season," said Sandeep Reddy, director, Propstack. Value of home sales in October rose 31% from a year ago to Rs 11,640 crore, while the growth from pre-Covid level seen in February stood at 33%.
"Sales activity has surpassed pre-Covid level and we are witnessing faster deal conversions owing to stamp duty reduction. Homebuyers’ response in the last few weeks can be attributed to the overall financial benefit worth 8-17% of the property cost. Festive sales will see further push from here," said Rajan Bandelkar, MD, Raunak Group.
While the home sales activity in the country's most expensive property market has recovered sharply from a year ago as well as pre-Covid levels, stamp duty collection has declined given the reduction in rates announced by the state government. In October, the stamp duty collection stood at Rs 233 crore as against Rs 438 crore in February and Rs 443 crore in October 2019. However, it has increased from last month's collections of Rs 181 crore. In August, the government of Maharashtra had announced reduction in stamp duty on property registrations to 2% for transactions between September 1 and December 31 from 5% earlier.
The stamp duty will be 3% for agreements to be registered between January 1 and March end. The stamp duty reduction has not only helped converting pent up demand in mid-income and affordable segment, but has also promoted conclusion of several large-ticket transactions in the city and the trend is expected to pick up further during the ongoing festive season.