Mumbai: Registration of property sales in Mumbai continues to be on a year-on-year decline in April despite an increase in stamp duty revenue collection. Last month, though the numbers fell by 10.46%, there was an increase in the collection of stamp duty revenue by 21.94%.
The statistics available from the Inspector General of Registration and Controller of Stamps under the Department of Registration and Stamps show the falling trend to continue for the last few months.
Of the total sales, about 83% were residential properties
Last month, 10,514 properties from Mumbai were registered with the government as opposed to 11,743 properties in April 2022. Of the total 10,514 sales that got registered the previous month, about 83% were residential properties and the balance was non-residential transactions.
Comparatively, the revenue earned grew 21.94% in April 2023 at Rs8,99,90,26,460 as against Rs7,37,95,44,227 during the same month in 2022. Since April 2022, the government had hiked stamp duty payment by 1% on account of metro cess. In other words, 5% is paid towards stamp duty, 1% each towards metro cess and registration charges.
High-value properties led to the ramp-up of earnings for the govt
As the registrations for the apartments above 1,000 sq ft increased and there was a fall in smaller flats, the total number of transactions too fell but the revenue earned touched a new high for the state. In other words, the increase in high-value properties led to the ramp-up of earnings for the government.
According to experts, the dwindling numbers are due to global economic headwinds as compared to the previous year. The downfall trend may continue due to the cascading effects of inflation coupled with layoffs in the technology companies. The rise in home loan interest rates too is one of the contributing factors for lesser loan disbursals happening in the affordable housing and mid-segment categories.