Mumbai: City witnesses upward trend in property registration in June

Mumbai recorded an upward trend for home purchases in June. According to the statistical data with the Department of Registration and Stamps, Government of Maharashtra, in June, this year, a total of 7,856 conveyance (sales) were made in the city. This generated a revenue of approximately Rs 420.27 crore for the state exchequer through stamp duty fees levied on the purchase of property, which is currently at the rate of 5 per cent.

Shishir Baijal, chairman and managing director, Knight Frank India, stated that despite the second wave of the COVID-19 pandemic being severe than the first wave and the lockdown duration as well as intensity being similar, a stronger growth in property registrations was seen after the restrictions were eased this year compared to last year. The recovery indicates a fundamental shift in homebuyers' behavior towards owning a house, an aspiration which had taken a backseat.

According to the Knight Frank India report, 42 per cent of the registrations in June, 2021, were from new residential sales concluded in the month, recording a sharp improvement compared to 29 per cent in May and 7 per cent in April.

Besides, the Maharashtra government, to encourage women homebuyers and to celebrate International Women’s Day on March 8, had announced a 1 per cent rebate in stamp duty effective from April 1. As a result, women homebuyers constituted 6.6 per cent of new home sales in the month of April, paying a discounted stamp duty rate of 4 per cent over their purchase. In June, the share of women homebuyers across the 7,857 units registered is 4.7 per cent.

Manju Yagnik, vice chairperson, Nahar Group and senior vice president, NAREDCO, Maharashtra, said, "The acceleration of the government’s vaccination drive across the nation has infused the needed confidence in the market and revived the market. Reintroducing stamp duty waiver will pull end users and first time homebuyers to invest in real estate for the safety and security of their families during the ongoing pandemic."

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