Mumbai sees record house registrations

In just the last seven days of January 2021, about 2,328 houses --conveyance (sales) have been sold out in Mumbai alone, generating a revenue of Rs 59.88 crore through stamp duty to the government. Similarly, in the whole of Maharashtra state 36,561 houses sold out and the revenue generated was Rs 253.63 crore, according to the Department Of Registration And Stamps Maharashtra government. Now the government has fixed the stamp duty from January 1, 2021 till March 31, 2021 at 3 per cent.

The Mahavikas Agadi government on August 26, 2020 had decided to temporarily reduce stamp duty on housing units from 5 percent to 2 percent until December 31, 2020 and 3 per cent until March 31, 2021 to boost the stagnant real estate market, which had been hit hard by Covid-19 pandemic.

Interestingly, the reduction in stamp duty percentage yielded good response from homebuyers. Reportedly, Mumbai recorded a historic surge in home sales registrations in the month of December 2020. Total sales registered for the month of December was 18,854 units, generating significant revenue to the state through stamp duty.

On January 6, the state has reduced real estate premiums by 50 per cent. The reduction of premiums will be applicable till 31 December, 2021. All projects that wish to avail of the premium concession will have to pay full stamp duty for the customers till December 31. High premium puts a financial burden on developers leading to higher costs for the homebuyers. The reduction in premium cost will help softened prices and renewed buyers' interest, believe realty experts.

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Free Press Journal