The property market in India’s financial capital, Mumbai, has reached a 10-year high as the city surpassed the 1 lakh registration mark in a year. Buyers’ enthusiasm to acquire new properties comes in the backdrop of record low-interest rates that are being currently offered by lenders. Building on the momentum of November’s festive month that saw property registration in excess of 7,582, Mumbai’s property market has already recorded 5,553 registrations in the first three weeks of December, revealed Maharashtra’s Inspector General of Registration’s data accessed by ET.
The gain in new property registration has made Maharashtra’s treasure richer by nearly Rs 1000 crore since November. The state’s exchequer earned over Rs 421 crore and Rs 549 crore in these two months.
The enthusiasm for new property acquisition has continued despite the non-extension of stamp duty benefits offered by the government.
Property registration from January to November 2021 was reported to be 122 percent higher than the figures of the corresponding period of the previous year. Maharashtra’s exchequer gained over Rs 5000 crore as stamp duty for property registration during this period.
To push the demand in the property market, the Maharashtra government had introduced stamp duty benefits by giving some added cushion to home buyers. The government had given a four-month window for new deal registration if the stamp duty was paid before March-end while lowering the duties to 2 percent from 5 percent. The stamp duty benefits window was closed in July this year with Mumbai recording the highest number of property registration in 10 years.
Though the new registration figures recorded some slump in the following month, they soon regained momentum to show promising trends since September.
In November 2020, when the benefits were still in place, the property demand soared to a new high with the registration of over 9,300 deals which was more than even the pre-pandemic level. The stamp duty collection in November 2020 alone added Rs 288 crore to the state government’s treasure.
In November 2019, Mumbai’s real estate market had recorded 6433 new registrations.
The enthusiasm of home buyers, low-interest rates and other government policies are likely to push the positive property buying trend next year as well.
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