Housing sales in Mumbai saw a drop on Day 1 of the 5% stamp duty in the city of Mumbai was implemented.
By Varun Singh
The impact of 5% stamp duty in the city of Mumbai could be seen on the first day of its implementation.
According to data from Department of Registration and Stamps Mumbai on April 1, saw a total of 544 housing sales being registered in the city.
This was 243 housing sales less than what was registered on March 31.
On March 31 a total of 787 sales were registered in Mumbai, it was also the last day of the 3% stamp duty.
The government of Maharashtra in August 2020 announced a cut in the stamp duty.
For the period between September 1 to December 31, 2020 the stamp duty cut was 3%.
Between the period of January 1 to March 31, 2021 the stamp duty cut was 2% in the state.
This had boosted the housing sales across the state and especially in the city of Mumbai.
The real estate industry twice in this period created history, first in December 2020 when more than 19.5k sales were registered.
The second time history was created in March with more than 17.7k housing sales.
However, the biggest fear noted by developers is that the state government’s decision of bringing 5% stamp duty back.
Many fear that this might derail the sales.
Ashok Mohanani, President, NAREDCO Maharashtra, said, “It would have been a great move if the Government would have extended the stamp duty benefit for a couple of quarters more to keep the sales momentum going forward. On behalf of NAREDCO and the real estate fraternity, we would sincerely urge the Government to reconsider their decision in favour of the real estate sector.”
Another developer claimed that the industry is still not out of crisis situation and hence the stamp duty cut was needed for some more time.
Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty Hon. Secretary, CREDAI MCHI, “The industry isn’t out of the crisis situation yet as we see a rise in the Covid cases and a fear of yet another lockdown in the State. We will continue to urge the Government to reconsider their decision and extend the stamp duty benefit further in interest of the homebuyers.”
Also Read: From April 1 Mumbaikars To Pay 5% Stamp Duty
