By Varun Singh

In the history of Mumbai’s real estate sector, the first 20 days of December has broken all realty records.

For the first time Mumbai’s real estate market has surpassed 10k mark. Which has never happened earlier.

Mumbai’s real estate industry saw a total of 10,522 sales being registered till Sunday that is December 20.

Till now the highest sales registered was in November 2020, where a total of 9,301 sales were registered.

According to a research by SquareFeatIndia data available from the Department of Registration and Stamps in the first 20 days of December Mumbai sold 10,522 units.

Compare it with December 2019 figures where in the entire month only 6,433 sales were registered.

The main reason being attributed to this rush for registration of sales is, the end of season sale in stamp study.

Till December 31, 2020 the stamp duty one has to pay in Mumbai is 2%, which means a direct 3% savings. In Mumbai before September 2020 the stamp duty was 5%.

The government announced a stamp duty cut of 3% till December 2020 and 2% cut till March 31, 2020.

Also Read: Stamp Duty Reduced Read How Much You Will Save

Apart from this the home loan interest are at the lowest, and to top it all, developers are giving heavy discounts on the prices.

Many developers have even absorbed the 2% stamp duty and are willingly paying it on behalf of homebuyers too. This has added to the savings of the home buyers.

Developer Arvind Goel says, “The real test for the real estate industry will begin from January, when the stamp duty cut will decrease from 3% to 2%.”

“Most homes sold during this time is that of the affordable segment. Luxury market would hardly comprise of 5% of the total sales.”

Arvind Goel, Developer

Real Estate market was one of the worst hit during the Coronavirus led Pandemic, when the migrant labour started reverse migration.

According to experts, the realty market in the city of Mumbai was expected to break records till end of the month. In 20 days history has been created.

Sales were hit heavily, in the month of April during lockdown in Mumbai no sales took place.

Sales picked up only in September after the stamp duty cut and the market has been going strong since then.

Also Read: Builder Knocks MahaRERA Door For Payments From Homebuyers

The post Real Estate History Created: Sales Surpass 10K appeared first on Square Feat India.

By Varun Singh

If the start of 2020 was one of the worst years for Mumbai’s real estate Industry then the end of the same year has proven to be the best for the industry.

Only in 16 days of December 2020, Mumbai witnessed 7905 sales, in December 2019 the figure for the entire month stood at 6433.

If sales continues at this pace then December 2020 may break all records. already November 2020 with 9301 sales the record since 2012 stands broken.

Research by SquareFeatIndia shows that, in the first 18 days of November 2020, the sales figure stood at 5574 units.

Going by that logic December which has registered 7905 sales in Mumbai in 16 days may end up breaking the record of November. Thus ending up breaking all records set by the real estate industry in terms of sales.

Mumbai and the entire state of Maharashtra has witnessed a rise in sales from September after the government announced a stamp duty cut.

Till December 2020, anyone buying a house in Mumbai will have to pay a stamp duty of 2%, instead of the earlier 5%.

Stamp duty will be 3% from January 1, to March 31, 2021, the reason for the spike in sales can easily be attributed to the stamp duty cut.

Apart from this many developers in Mumbai city have offered to even bear the cost of the stamp duty this along with the discounts that developers are already offering.

Figures from the Department of Stamps and Registration have show a constant increase in the number of sales taking place in the city.

Housing experts claim that the surge will continue till the end of the stamp duty cut discount remains.

The high sale figures also includes many purchases that were carried out earlier but were registered on a later stage to avail the benefit of the stamp duty cut.

Also Read: Diwali 2020 Best For Mumbai’s Real Estate Since 2018

The post Mumbai In December May Break All Realty Records appeared first on Square Feat India.

By Varun Singh

Slash GST rates, is the new demand that the developer community has in pipeline after the stamp duty rate cut was announced on Wednesday.

Developers of Mumbai had been petitioning the state government for a very long time, to reduce stamp duty rates.

Finally the state government announced that for the period between September 1, to December 31, the stamp duty shall be reduced by 3%. The same will be reduced by 2% between January 1, 2021 to March 31, 2021.

This means, if one buys a flat in Mumbai worth Rs 1 crore, he will pay stamp duty at current rate of 5% which would be Rs 5 lakh. But now till December 31 from September 1, the stamp duty will be Rs 2 lakh and the same would be Rs 3 lakh between January 1, 2021 to March 31, 2021.

Now with the state government fulfilling the demands of the developer community, the new demand is already up and it’s related to GST.

GST is with the central government, and the developers feel a cut in GST rates would mean a great relief for the real estate sector.

Lauding the stamp duty cut, Dr Niranjan Hiranandani, National President, NAREDCO said, “If central government can slash GST rates in an upcoming council meeting (it) would act as a shot in the arm”

Builders believe that, the amalgamation of both GST rate cut with stamp duty cut will act as a catalyst for home developers to come ahead and buy homes.

Meanwhile, the home loan interest being at its lowest, builders say that this is the right time to invest in a home.

Rajan Bandelkar, President, NAREDCO West said, “It is a convenient time (to buy a house) considering that stamp duty has been reduced, also, property prices and bank loan rates are at a low.”

Even Kamal Khetan, Chairman and Managing Director, Sunteck Realty Ltd believes that the announcement by state government will accelerate the residential real estate demand and further improve the sales momentum.

Shishir Baijal, Chairman & Managing Director, Knight Frank India, hopes that this move (stamp duty cut) will help the residential real estate segment to gain the ground lost during the pandemic and stimulate demand.

It is also expected that, the stamp duty cut will push festive season sales

Anuj Puri, Chairman – ANAROCK Property Consultants, says, “To ease inventory pile-up and cost overruns, many players have already topped off discounts with added incentives such as booking amount refunds, statutory fees waivers, cashback schemes, easy payment structuring and assorted freebies. This stamp duty rate cut can push sales further into the green during the festive season.”

Even Bhushan NemlekarDirector, Sumit Woods Limited, calls the decision on stamp duty reduction as a festive gift for homebuyers, which will improve the sentiments and instill confidence in homebuyers. 

This is the second time this year the state government has taken such a step to provide relief for homebuyers. Manju Yagnik, Vice Chairperson Nahar Group and Vice President NAREDCO Maharashtra, said, “The 3% cut combined with the 1% stamp duty cut announced earlier in the year will help attract investment in the housing sector.”

Meanwhile the stamp duty cut will not only benefit homebuyers, but also will help the state government get some revenue as the sales are expected to go up with the new announcement.

Also Read: Stamp Duty Reduced Read How Much You Will Save

The post Slash GST Rates, New Demand After Stamp Duty Cut appeared first on Square Feat India.