By Varun Singh

Within a month the state government earned almost similar amount that it earns in a year from registration of sales.

According to data accessed by SquareFeatIndia the state government in the month of March 2021, collected Rs 9,066 crore from registration of properties. The data is for entire state.

This is the highest ever revenue generated by the state government in a month via registration.

The revenue generated in March 2021 can put the entire 2020 year to shame. In 2020 for the 12 month the state government generated a revenue of Rs 11,682 crore.

In March the biggest draw for homebuyers and developers to register was the end of the discount on stamp duty.

The state government in August 2020 came out with a stamp duty cut. This stamp duty cut for the period of September 2020 till December 2020 was 3%. Between January 2021 till March 2021 it was 2%.

The March 2021 collection even overshadowed the December 2020 collection when the biggest stamp duty cut came to an end.

In December 2020, the revenue generated stood at Rs 2,213 crore, which is the highest in the year 2020. But it looks timid in front of March 2021 when the state generated almost five times more than December 2020.

March 2021 was the only March since 2013 which generated such high revenue for the state government.

From April 2021 the state government brought in force the earlier stamp duty rates. Except for women homebuyer who during registration will get a 1% discount.

In April 2021 the state government generated a revenue of Rs 1,256 crore which is almost eight times less than. March 2021.

Also Read: April 2021 Is the Best April For Real Estate Since 2013

The post In March 2021 Alone State Collected 9K Crore From Registration, In Entire 2020 It Was 11K Crore appeared first on Square Feat India.

By Varun Singh

The government last year gave the real estate industry one of its best gifts. It was the stamp duty cut.

Between September 2020 till December 31, 2020 it was a 3% stamp duty cut, and then till March 31, it was 2%.

In two days the stamp duty cut shall come to an end and now realtors have put forth a demand to extend it.

CREDAI MCHI one of the apex realtors body in Mumbai and MMR even personally wrote a letter to Revenue minister Balasaheb Thorat to extend the benefits for 12 months.

Deepak Goradia, President, CREDAI MCHI said, “We have requested the Maharashtra Government, to grant and extension of the stamp duty rebate for another 12 months to sustain the momentum whilst continuing the positive cucle of investment.”

Realtors from other bodies have also shared the same feeling. For example, NAREDCO Maharashtra, another apex realtors body in the state wants the stamp duty cut to be extended for next two quarters.

Ashok Mohanani, President – NAREDCO Maharashtra, said, “On behalf of the real estate fraternity, we at NAREDCO urge the State Government to extend the reduced 3% stamp duty charges for another two quarters so that home buyers continue to be encouraged and invest in their dream homes.”

The last few days saw a hike in sales, as homebuyers could avail the stamp duty benefit coupled with the reduction in home loan interest rates.

Pritam Chivukula – Co-Founder & Director, Tridhaatu Realty and Hon. Secretary, CREDAI MCHI, said, “We can witness a considerable rise in property registrations this month as the buyers are swooping in on good deals on the back of rock-bottom interest rates on home loans, stamp duty relaxation, offers and the availability of choices from good developers. We expect the trend to continue if the Government decides to extend the stamp duty benefit for some time.”

Along with realtors experts also expressed the fear that sales may go down if the stamp duty cut isn’t extended.

“We believe in the first quarter of FY22, the market will enter a phase where it will witness reduced volumes until and unless the 3% stamp duty charges are extended further, in order to ensure that the momentum continues,” said Jayesh Rathod, Executive Director, The Guardians Real Estate Advisory.

Also Read: Stamp Duty Concession What Real Estate Industry Wants?

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By Varun Singh

Real Estate had it best festival of sales during the pandemic. A record was set in December when more than 19k sales took place in the city of Mumbai.

In the 15 days of March already sales had crossed the 10K mark.

The attribution for the high sales is to the stamp duty concession that was announced by the state government.

The state government in August 2020 announced a stamp duty cut.

The stamp duty cut between September 1, 2020 to December 31, 2020 was 3%.

Between January 1, 2021 to March 31, 2021 the cut is 2%. Within a week’s time from now, the stamp duty concession will be gone.

The real estate industry feels it should continue, the reason being that sales will continue as it is.

The government has remained silent what its stand would be on the concession from April 1.

Manju Yagnik, Vice-Chairperson, Nahar Group and Sr. Vice President, NAREDCO, Maharashtra says, “It is no surprise that as we approach the deadline of the stamp duty holiday of 3% from the original 5%, the industry along with buyers would want the government to look at an extension of stamp duty waiver at least till the end of 2021. We all know that the introduction of reduced stamp duty from mid-2020 proved a huge success and gave an extra impetus to the industry who, in the wake of the first national lockdown saw plummeting sales.”

Developers feel that the cut should be extended, as also with rising COVID cases not many are coming ahead for registration.

“There are a couple of reasons why the government should extend the stamp duty cut further. In the past few weeks, a large number of prospective flat buyers have not been able to go ahead with the process of completing the purchase of flats or paying stamp duty due to rising COVID cases etc. Also, the mechanism is such that it allows one to deposit stamp duty only in PSU banks leaving people with a limited option of time, especially with the bank holidays on account of Holi,” says Rohit Garodia, Managing Partner – Pecan Reams.

Developers also claim that the stamp duty cut has led to revival of the real estate industry.

Deepak Goradia, President CREDAI MCHI says, “The record breaking property registrations and the high demand that we witnessed due to the stamp duty rate cuts has led to a definitive path for the revival of not only the real estate industry but the entire state’s economy. In view of the drastic change in perception where consumers are more keen on buying instead of renting, we strongly feel that if the reduced rates are maintained beyond March 31, it will definitely ensure the continuation of high sales momentum that we’ve seen in the past 6 months.”

Meanwhile, developers are expecting that the stamp duty concession should be extended till end of this year.

“With a further extension of the stamp duty cut till Dec 2021, thousands of new home buyers along with the government would stand to benefit.”

Manju Yagnik, Vice-Chairperson, Nahar Group and Sr. Vice President, NAREDCO, Maharashtr

Also Read: Stamp Duty Concession, Woman To Pay 1% Less

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By Varun Singh

Monday was International Women’s Day and also the day when the state government announced its budget.

The state government came up with another stamp duty concession in its budget.

This concession is only for women.

The Finance Minister in his budget speech said, “On the eve of International Women’s Day, I propose concession in Stamp Duty of 1 Percent over the prevailing rate exclusively to Women, provided the transfer of house property or registration of sale deed is in the name of woman or women only.”

Due to the above tax concession, there will be revenue shortfall of around Rs 1000 Crores.

The developer community considers this as a good move that will boost sales.

Rohit Poddar, Managing Director, Poddar Housing and Development Ltd said, “For the real estate sector concession of 1% for property registered in woman’s name under Rajmata Graha Swamini Yojana is a welcome move.”

“IT will help boost demand from this segment of homebuyers due to more and more females entering the workforce, becoming key decision makers.”

Rohit Poddar, Managing Director, Poddar Housing and Development Ltd

Not only Maharashtra but our neighbour Karnataka also announced a stamp duty cut on Monday.

Anuj Puri, Chairman-Anarock Property Consultants said, “Emulating its immediate neighbour , Maharashtra which saw a major boost in sales due to limited period stamp duty cuts last year, Karnataka decided to reduce the stamp duty charges to 3% for homes valued between Rs 35-45 lakh.”

This move is expected to benefit 24% of the total unsold stock of Bengaluru which stands at 59,350 units.

24% of the unsold stock is priced within the price bracket of Rs 45 lakh while 64% units is within RS 45 to Rs 1.5 crore.

Dr Niranjan Hiranandani, National President NAREDCO, on the stamp duty cut said, “It has been seen that states like Maharashtra which reduced stamp duty not only saw a surge in total sales, but also a corresponding hike in total stamp duty collected as revenue accruing to the state.”

“If 2020 saw COVID 19 influenced slowdown, the decision by the Maharashtra Government to reduce stamp duty effectively helped counter balance the disruption caused by the pandemic.”

Dr Niranjan Hiranandani, National President NAREDCO

The government of Maharashtra in the year 2020 announced a stamp duty cut of 3% between September till December 2020.

The stamp duty has been reduced by 2% for a period between January to March 2021.

Also Read: Stamp Duty Hike Fails To Slow Realty Sales

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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

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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

COVID 19 has given much of an opportunity for the real estate industry to celebrate in the year 2020.

However, the month of November 2020, surely has provided the realty industry a reason to smile.

November 2020 has broken all records and registered the highest sales in the city of Mumbai since the year 2012.

Yes heard it right, figures accessed by SquareFeatIndia shows that, 9,301 sales took place in November 2020.

This figure is way higher than the previous nine years and even when compared to the other months of 2020, November performed exceptionally well.

In November 2020, the revenue generated by the registration of 9,301 sale documents is Rs 287 crore.

The major reason being attributed to the rise in sales is the stamp duty cut by the state government. Currently in a city like Mumbai stamp duty stands at 2%.

“Limited period stamp duty cut continues to remain the biggest catalyst for residential sales in Mumbai.”

Shishir Baijal, Chairman and Managing Director, Knight Frank India 

Baijal further says, ” The sales were also augmented by the festive period, lowest ever home loan rates and incentives extended by developers.”

Developers are also citing the same reason for the high rise in sales.

Deepak Goradia, President, CREDAI MCHI said, “With low home loan rates, stamp duty reduction and offers by various developers, it is safe to say that it’s the best time to invest in Real Estate, especially in the MMR Region. Hence, it is of no surprise that home sales registrations have also increased, providing more definite evidence of improving homebuyers’ sentiments and gradual revival of the sector. We expect this upward trend in demand to continue beyond 2020 and into the new year.”

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

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By Varun Singh

This probably could be counted as a sign of ‘acche din’ for real estate industry in Mumbai. After a slump due to the COIVD 19 virus, real estate sales witnessed a rise in September.

Mumbai city saw 5,597 sales being registered with the Department of Registration & Stamps in September.

In August 2,642 sales were registered thus a jump of 111.8% in realty sales in September.

September sales are way higher than the number of sales registered in March 2020, which stood at 3,798 registrations.

The September figures are more than the combined total of sale registrations that took place in August and July too.

In August, 2,642 sales were registered, while in July 2,662 sales took place. This adds up to 5,304 sales, which is 293 sales less than September.

While the number of sales has gone up in September, the revenue from registrations saw a decline.

Mumbai from Conveyance (Sales) generated Rs 180.34 crore in form of revenue from registrations in September.

In March the revenue generated via sales was Rs 304.93 crore, in August it was Rs 176.39 crore, and in July the revenue from sales stood at Rs 214.28 crore.

The main reason for the low revenue can be attributed to two reasons, first, the stamp duty rate cut.

From September 1, the stamp duty in Mumbai was reduced to 2 per cent from 5 per cent.

Second reason which would have a marginal impact was the ready reckoner rates being reduced by 0.60 per cent in the city.

Yashika Rohiira of Karma Realtors, attributes the rise in number of sales to the reduced stamp duty in the city and the state by government.

“During the last quarter the market saw a price correction and a reduction in the stamp duty. This has encouraged end users and investors to take advantage of the situation and book their profits. Also, transactions that were confirmed, from last week of August to mid September, were registered after pitrupaksh ended.”

Yashika Rohiira, Karma Realtors.

In September, 17,215 documents of Leave and Licenses (eRegistration) were registered too, generating a revenue of Rs 2.60 crore.

Meanwhile, everyone sees this figures the way they desire to, for builder community it surely is a good sign.

After the pandemic hit the country, the lockdown ensued no sales in April. In April only 27 leave and license e-registration took place in Mumbai.

In May, 207 sales were registered in the city generating Rs 16.37 crore revenue vie registrations.

June saw 1,839 sales being registered in Mumbai, which helped the city generate a revenue of Rs 153 crore,

Realty expert Dr Sanjay Chaturvedi says, the sales are not majorly fresh sales.

“This sales are nothing but documenting past investments, there is hardly any new sales. This is backlog and investors are now making their money safe.”

Dr Sanjay Chaturvedi, Realty Expert.

Not just Mumbai, sales have gone up even in the state too.

Across Maharashtra a total of 1.19 lakh sales were registered, generating a revenue of Rs 763 crore.

In August the revenue generated was Rs 815 crore from 82,100 sale registrations across the state.

Also Read: Mumbai Largest Contributor To Sales In Q3 2020

The post Mumbai Realty Sales Jump 112% In Sep From Aug appeared first on Square Feat India.

By Varun Singh

For Chembur resident, Deepali Gupta Rathod Diwali has arrived a bit early this time. Deepali has saved Rs 4.80 lakh from the government’s move of reducing stamp duty.

On Wednesday 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.

Rathod recently bought an apartment in Ghatkopar and was to go ahead with the registration on Thursday. She had even begun the process, and was to pay close to Rs 8 lakh as stamp duty for her purchase.

Now she has delayed the process by a week and will be saving close to Rs 4.80 lakh, which for a homebuyer is a huge amount.

Currently in the city of Mumbai, one has to pay a stamp duty of 5% during registration of their apartment.

If one has to explain, how this will impact the pockets of a home buyer in Mumbai then here’s an example. If one buys a flat worth Rs 1 crore, he or she would pay stamp duty at 5% which would be Rs 5 lakh, 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.

While Deepali is a happy right now, the developer community also is unable to restrain themselves from celebrating.

The developer community claims it as a victory for themselves, as they have managed to convince the government to reduce the stamp duty.

Nayan Shah, President, CREDAI MCHI, says, “Maharashtra Government’s decision to reduce the stamp duty from 5% to 2% till December 31 augurs well for the revival of MMR realty and is a much-needed boost to the ailing sector amid the pandemic.”

Shah says that, the reduction is bound to encourage first time homebuyers, fence sitters as well as resale flat buyers to invest in real estate.

The real estate industry has been suffering from a major slowdown, and this move by government will benefit the sector expect developers.

“We thank the Government for acknowledging the slowdown in the overall economy and reducing the stamp duty rates to stir up demand for homes. This will immensely benefit homebuyers as well as boost the real estate sector,” said Shailesh Puranik, Managing Director, Puranik Builders.

Developers expect that, coupled with the festive season, developers expect demand to pick up significantly which will provide a huge respite not only to home buyers but also to developers who have been suffering amid low demand and limited cash flow availability due to Covid – 19.

Also Read: Duty Of Builder To Provide Adequate Water To Project

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By Varun Singh

Stamp duty has been reduced and the announcement was made in the budget presented on Friday by Deputy Chief Minister Ajit Pawar. This is a sign that the developer lobby has finally managed to convince the government.

The budget stated, “One per cent concession, for the next two years, in the Stamp Duty and other related changes applicable on registration of documents in the area of Mumbai Metropolitan Region Development Authority and in the areas of Municipal Corporations of Pune, Pimpri- Chinchwad and Nagpur.”

This effectively will result in 4 per cent Stamp Duty and 1 per cent Metro cess. That means when a home buyer goes for registration of the flats he will be paying a total of 5 per cent instead of the existing 6 per cent stamp duty on his purchase.

This also means that the burden on a home buyer will reduce as he will pay 1% less as stamp duty when he or she buys a flat and registers it with the government.

Dr. Niranjan Hiranandani is President (National) NAREDCO as also President, ASSOCHAM, says, “Any cost reduction is welcome, and this move will positively impact home buyer sentiment. I appreciate the concern shown by the state government to help the home buyer as also real estate Industry.”

The developers body had met the chief minister recently and had asked him for several concessions.

The suggestion put forward by industry bodies was for a 50 per cent reduction in stamp duty. Hiranandani said, “We view this move as a beginning. Now that the state government has identified Industry problems, they will be sympathetic and are expected to take measures to improve the situation. These moves should result in a push to sales, with an increase in numbers.”

While this move will impact collections, which might go down by an estimated Rs 1,800 crore, developers claim that this will boost sales and thus the loss can be covered.

Also Read: Shahid Balwa In Uddhav Govt’s Crucial Committee.

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