Amid Covid, Mumbai sees 10-year high in property registrations in July

Topics Mumbai | property | homebuyers

The Maharashtra government had, in December 2020, given a leeway of four months to homebuyers to register a property after the payment of stamp duty in order to prevent crowding of registration offices.
The registration of properties in the Mumbai municipal region has jumped to its highest in a decade for the month of July, mainly because of the “leeway” given by the Maharashtra government.

As many as 9,037 units were registered in the month as of Friday, as against 2,662 registrations in July 2020, a sharp rise of 239 per cent.  The number of registrations is also 57 per cent higher compared with the pre-pandemic period of July 2019, property consultant Knight Frank said.

In December last year, the state government granted four months to homebuyers to register their properties after the payment of stamp duty in order to prevent crowding of registration offices. This ensured that those who had purchased houses and paid stamp duty on or before March 31, 2021 had a maximum window of four months till July 31 for registering their properties.

Normally, properties need to be registered within three months of the purchase. The leeway was given after the state government cut the stamp duty paid on property transactions in August last year. It was cut to 2 per cent till December, and 3 per cent till March this year.

Before this leeway was permitted, for over 95 per cent of the registrations in recent years, the difference between the date of payment of stamp duty and the date of registration was less than 10 days, and for less than 2 per cent of the registrations, the difference was over 30 days, it said.

The consultant said 53 per cent of the registrations in July 2021 were from new residential sales concluded in the month, recording a sharp improvement compared to 42 per cent in June 2021, 29 per cent during May 2021, and 7 per cent during April 2021.

At 4,824 units (July 30, 2021 till 12 pm), the number of new apartments sold (fresh sales) during July 2021 were 45 per cent higher compared to 3,300 units sold in June 2021, 207 per cent higher compared to 1,554 units sold in May 2021, and 573 per cent higher compared to 710 units sold during April 2021.

To celebrate the International Women’s Day, the state government announced a 1 per cent rebate in stamp duty for women homebuyers, effective from April 1, 2021.

As a result, women homebuyers constituted 6.6 per cent of the new home sales in April, paying a discounted stamp duty rate of 4 per cent over their purchase. The share of women homebuyers in May 2021 dropped to 1.7 per cent. In June, the share increased to 4.7 per cent, but fell to 3 per cent in July.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel