The hike in the ready reckoner rates, stamp duty, the one per cent metro cess and the increase in the price of raw materials like cement and steel and the resultant rise in home prices – none of these factors have failed to deter buyers, as is evident from the number of registrations recorded in the first 16 days of April. As per the department of registration and stamps, Government of Maharashtra, nearly 5,995 conveyance (sale) registrations had been recorded till April 16 this year. Last year, conveyance sale deeds for 10,000 homes were recorded in April because of the concession in stamp duty then in effect. On average, conveyance sales for 5,000 to 7,000 homes were recorded at the same time, for the period of 2014-2021.
Pritam Chivukula, co-founder and director, Tridhaatu Realty and Treasurer of CREDAI MCHI, a developers’ association, said, that despite the rise in stamp duty because of the metro cess and the hike in ready reckoner rates, demand has still continued to be robust in April 2022. “We have seen a lot of enquiries for our projects, with most of them converting into sales. Also, the auspicious occasions of Gudi Padwa, Ugadi, etc were an added advantage. Strong sales are proof that there is still demand in the market and good developers will continue to dominate. With regard to the rising construction costs, we will continue to urge the government to look into the rising prices in the interests of homebuyers,” he said.
Bhushan Nemlekar, director, Sumit Woods Limited, observed, “The prevailing low home loan rates are enticing homebuyers and this has immensely benefited the real estate sector in the last few months. Record low interest rates, together with festive deals, have encouraged consumers to proceed with their purchase and quickly close their transactions, in spite of the rise in stamp duty.”
With 6,000 homes being registered till April 16, the state exchequer netted Rs 370.99 crore in revenue. At present, the stamp duty in Mumbai is 5 per cent, with an additional one per cent metro cess levied on property purchases. The Free Press Journal, in its exclusive interview with MMRDA chief S V R Srinivas, had reported that the one per cent metro cess is applicable only on those properties which are, for instance, in a 500-metre radius of metro alignment. This revenue will be used to further improve the infrastructure, Srinivas said.
With metro lines 2A&7 along the Western Express Highway and the Link Road, several leading developers have come up with projects. Most property sales are underway in the western suburbs of Mumbai, according to Knight Frank India, a leading real estate consultancy firm.
Meanwhile, across Maharashtra, 61,532 property conveyance sales were recorded as per the IGR and Rs 1,131.18 crore in revenue accrued through stamp duty in the last 15 days.
