Mumbai has witnessed a decline in property registrations in the start of May itself. Last month in the first 15 days, close to 3,000 units were registered, in May the figures are low.
By Varun Singh
If there is any barometer to gauge how Mumbai city’s real estate market is performing then it is the registration figures.
And seeing t he figures from registration department for Mumbai, there’s some bad news.
Starting September 2020 till April 2021, property Mumbai saw properties being sold and registered in good numbers.
Till mid of April 2021, more than 3000 properties were already registered. In January, February, March and April more. than 10,000 properties were sold and registered.
However, in the 11 days of May, only 1,426 properties were registered in Mumbai. This is one of the lowest after a pretty long time.
The city saw a huge jump in property registration after, the state government had announced a stamp duty cut.
In the last week of August 2020, the state government had announced a stamp duty cut. It was 3% cut from September 2020 to December 2020 and from January 2021 to March 2021 the cut was that of 2%.
The real estate industry was almost pleading with the state government to continue with the stamp duty discount. However, from April 1, 2021 stamp duty was brought back to its original rates.
Except for 1% stamp duty discount for women homebuyers.
Meanwhile, Mumbai along with other part of the state has also been witnessing heavy restrictions since April, after the state saw a surge in the COVID 19 positive patients.
According to Anand Gupta, Chairperson, Housing and RERA Committee, Builders Association of India, the main reason behind less properties being registered is the government taking away. the discount.
Gupta said, “Once again the property registration numbers has drastically come down mainly because sudden lock down on all economic activities and more particular to capital goods. Secondly all incentives of reduction in stamp duty also got over at end of March.”
Even in the 1,426 properties that got registered in the 11 days of May, there are many which would be from the month of March, where the. government had allowed homebuyers to pay stamp duty and register within a fixed period later.
With the second wave of COVID 19 hitting the country hard, the real estate industry is also expected to feel the pinch. However, in the last few months the real estate industry has performed exceptionally well.