Property Registrations Jumped by 270% Thanks to Stamp Duty Cuts

Mumbai property registrations reportedly witnessed a 270 per cent increase since September 2020 compared to the months prior. 

Greater Mumbai saw nearly 1.13 lakh property registrations between September 2020 and July 2021. During this period, the State Government slashed the stamp duty rates from 5 per cent to 2 per cent (and later 3 per cent) in order to bolster the real estate sector during the coronavirus lockdown. 

Also read - Maharashtra: Real Estate Body Seeks Reinstatement Of 2% Stamp Duty On Property Registrations

By comparison, the period between September 2019 and July 2020 only saw 42,500 property registrations, as per the Department of Registration and Stamps. The stamp duty was at 5 per cent during this period. 

While the state brought down the stamp duty to 2 per cent between September and December 2020, it went up marginally to 3 per cent from January 2021 until March 31, 2021. Customers who signed their deals when the stamp duty rate was at 3 per cent were allowed to register their documents at the same rate until July 30.  

This has no doubt generated big revenue for the State Government. The 11-month period between September 2020 and July 2021 reportedly brought in INR 4,163 crores in collections. 

Read - Maharashtra Govt To End Stamp Duty Relaxations On Property Registrations