Mumbai property registration momentum continues; up 69% in January
Publish on : 2021-02-02 12:04:35
Up 75% from pre-COVID February performance; highest number of registrations witnessed in the month of January since 2012
Property registration in Mumbai, the country’s biggest real estate market, has continued its momentum in January led by the cumulative impact of all-time low home loan rates, discounts and reduction in stamp duty charges.
The rush among Homebuyers to register their agreements pushed the number of deals in January up 69% from a year ago and 75% from pre-COVID19 numbers in February to 10,412 in January until 9pm on Friday showed the data from the office of the Inspector General of Registration Maharashtra.
This is the highest number of registrations witnessed in the month of January since 2012. The sustained growth is being witnessed after the country commercial capital set a historic high of 19,552 deals in December, up 204% from a year ago.
The growth in monthly registration numbers in January is recorded even after the 1% rise in stamp duty at 3% as against 2% until December end.
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.
While the deal volume witnessed a spike, the stamp duty reduction has hit the revenue collection that stood at Rs 306 crore as against Rs 454 crore a year ago.
Following the announcement of stamp duty reduction, property transactions in Mumbai, Pune and other urban pockets of the state have been witnessing a sharp jump. The registrar had to keep all 26 Mumbai offices open on all Saturdays to accommodate the higher number of deals.
The government has also started to operate registration offices in two shifts as against one shift operation that had started during Covid19 period.
In Mumbai, all registration offices now commence operations at 7 AM and close at 9 PM as against the timing of 10AM to 5:30PM since the outbreak of Covid19.
Apart from helping converting pent up demand in the mid-income and affordable segment, the stamp duty reduction has been driving several large-ticket transactions in the city and the trend is expected to pick up further.