Mumbai residential registration bounces back to pre-Covid level on stamp duty cut
Registration of sales agreements stood at 5,597 in September, nearly 95% of the pre-COVID level seen in February. The registration numbers rose 110% from July, reflected data from the office of the Inspector General of Registration Maharashtra.
The Stamp duty reduction and a continuing price correction have resulted in a sharp bounce back in September housing sales in Mumbai, the country’s most expensive property market, as indicated by the registration activity during the month.
Registration of sales agreements stood at 5,597 in September, nearly 95% of the pre-COVID level seen in February.
The registration numbers rose 110% from July, reflected data from the office of the Inspector General of Registration Maharashtra.
A raft of transactions for commercial and residential properties was finalized in the Mumbai registration and stamp duty department after it reopened for business on May 18. But the revenue numbers went down slightly in August as most homebuyers were in the wait and watch mode, hoping that the government would cut the stamp duty rate.
On August 26, the Maharashtra government decided to temporarily reduce stamp duty on housing units from 5 percent to 2 percent until December 31, 2020, to boost the stagnant real estate market hit by COVID-19. Stamp duty from Jan 1, 2021, until March 31, 2021, will be 3 %.
Mumbai suburban in the month of August saw a fall in the revenue from registration compared to its July collection. In August, the revenue from stamp duty and registration of property and other documents stood at Rs 162.91 crore. This when compared to the July revenue was slightly down from Rs 188.41 crore.
A total of 17,917 documents were registered with the office of stamp duty and registration in Mumbai suburbs in August. The number stood at 15,816 in July 2020.