No let-up in property registrations in Mumbai; October sees new decade high number
Boost to home buys even in the absence of rebate on stamp duty; low home loan rates and discounts buoy the purchase
India’s most expensive real estate market Mumbai recorded 8,307 property registrations in October, continuing the trend of setting record high numbers. The number was already the highest in September, says a report in Times of India. The number for this month even beats the September figure.
In the first two weeks of the month—the Navratri festival fell during this period– the number of property registrations was 4,052, fetching stamp duty revenue of Rs 259.60 crore to the state government, the report said attributing the figures to the Inspector General of Registration, Maharashtra.
Discounts offered by property developers and low housing loan rates during the festive season are cited as some reasons for increased property purchase in the city.
Mumbai has been on a record-setting spree for the past few months in the number of property registrations.
No rebate on stamp duty on property registrations
Notably, there was no rebate on stamp duty for property registrations in October. Even with normal stamp duty rates, the number has beaten the registration number in the year-ago period, when a total of 7,928 deals were registered.
Revenue from stamp duty also scaled a new peak. October deals have fetched the state government Rs 531 crore in stamp duty charges, more than double from a year ago.
The Times of India quoted Parag Munot, Managing Director, Kalpataru, as saying that sales momentum is positive with good demand conversion in luxury as well as aspirational segments.
The report further said that sales were not supported by tax breaks or stamp duty exemption. Though the benefit of rebate on stamp duty for homebuyers ended in March, the state government had given a four-month window for property registration if the stamp duty was paid before the March-end.
That window also closed in July, recording the highest number of property registrations in 10 years. In the subsequent months, property registrations declined.
Real estate players have aligned their launches to benefit from the upbeat homebuyer sentiment, the report said.