As per figures published by the Maharashtra Government, the total number of properties sold in Mumbai saw a growth of 112 per cent in September as compared to August. The figures go on to reveal that a total of 5,597 sale/conveyance deeds were registered with the State Inspector General of Registrations (IGR) in September while only 2,642 deeds were registered the previous month.
This increase is welcoming news for the property market given that it has been at a standstill since the lockdowns were announced in March. Further, the number of registered sale transactions was reported to be 39 per cent higher in September as compared to the same period last year.
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Maharashtra’s figures revealed that 1,19,834 properties were sold in the month of September, which was incidentally 46 per cent higher than in August (82,100) and a 49 per cent increase over September 2019 when 80,349 properties were sold.
The growth can be attributed to the state government reducing the stamp duty payable on sale transactions. As per the new norms, the stamp duty will be reduced by 3 per cent for sale transactions registered between the 1st of September, 2020 and December 31, 2020, whereas the duty will be cut by 2 per cent for registered transactions between January 1, 2021, and March 31, 2021.
Speaking on the impacts of the stamp duty cuts, State Revenue Minister Balasaheb Thorat said, “The benefit has been passed on to the buyer. We have seen an uptick in sales since August 25. We are hopeful of the trend to continue.”
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It is worth pointing out that the stamp duty cuts provided by the state will cost the state exchequer ₹1,000 crores, though there’s no denying that this move has helped revive the faltering real estate market in Mumbai as well as the state.
Understandably, this move has hit the state’s revenues. The State Government reportedly earned revenue of ₹181 crores via stamping and registration fees this September whereas the overall revenues were at ₹348 crores in September 2019.
On the other hand, the state government is also looking to provide relief to the builders. It is said that the cabinet is mulling a reduction in construction premiums based on the recommendations of the high-level committee overseen by the chairman of the Housing Development Finance Corporation, Deepak Parekh.
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