March saw over Rs 1,215 crore revenue collection from stamp duty, registration fees in Mumbai
In 2020, Covid-19 also affected the real estate market like other businesses. In 2021, in all 17,728 properties were registered and revenue collected was Rs 874 crore. In 2022, in all 16,726 sales registration took place and with Rs 1,160 crore revenue collected.
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Several real estate players are coming up with new launches seeing the market trend. UK Realty, one of the leading builders, recently announced the launch of two new projects in Mumbai. (Express Photo) March 2023 saw over Rs 1,215 crore revenue collection via stamp duty and registration fees in Mumbai, highest in the last five years. This, despite lower number of properties registered this March at 13,066, against 16,726 property registrations in March 2022 and 17,728 in March 2021. Experts say the revenue collection is higher this year because of higher demand for high-end projects.
Pankaj Kapoor, founder of Liases Foras, a real estate consulting firm, said that the revenue is high as in recent times several high-end houses were sold. “It is mainly because of the Rs 10 crore capital gain tax, which will come into force from April 1. So there was a rush in luxury segment buying. However, the number of registrations recorded indicates a slowdown in the market. There are three factors, first is, the interest rates have increased on housing loans and secondly the prices of properties have gone up compared to previous year. Third, good quality ready inventory has been picked up in the past and right now the stock is not available. Therefore, the number of property registration is going downwards,” Kapoor said.
In 2019, a total of 6,617 sales registrations were recorded with over Rs 555 crore revenue collected. In 2020 a total of 3,798 properties were registered with Rs 304 crore revenue collected. In 2020, Covid-19 also affected the real estate market like other businesses. In 2021, in all 17,728 properties were registered and revenue collected was Rs 874 crore. In 2022, in all 16,726 sales registration took place and with Rs 1,160 crore revenue collected.
Ram Naik, Director, The Guardians Real Estate Advisory, a consulting firm, said despite the challenging economic environment, it is encouraging to see the real estate market doing well. “The fact that this is the highest revenue collected since April 2022 demonstrates the region’s pent-up demand for real estate. The rise in property prices and home loan interest rates has not deterred buyers, and the increase in registrations demonstrates their confidence in the real estate market. It’s also a good sign for the region’s overall economic growth,” he said.
According to Knight Frank India, the rising mortgage rates stretched house purchase affordability, but property sales in Mumbai remained buoyant due to robust consumer sentiment for home ownership. The daily average property registration in March 2023 was 401 units, making it the third best March month in the last 10 years after March 2021. The benefits of the stamp duty cut resulted in the highest average daily sale of 572 units in March 2021, while March 2022 saw an increase in property registration with an average daily sale of 540 units due to a rush in property registrations prior to the Metro cess being levied. March in this financial year too will be the best month albeit driven primarily by homebuyer enthusiasm.
Moreover, in March 2023, homebuyers’ buying patterns on housing shifted, with Rs 2.5 crore and below accounting for 82% of registered properties compared to 87% in February 2023, and Rs 2.5 crore and above accounting for 17% of all registered houses compared to 14% in February 2023.
Whereas, bulk of the sales registrations were for properties in western suburbs constituting 62% of the market share in March 2023, while 25% of registrations were for properties in Central Mumbai. In March 2023, 6% of registrations were for Central Mumbai, while South Mumbai’s share of total property registrations stood at 7%.
Several real estate players are coming up with new launches seeing the market trend. UK Realty, one of the leading builders, recently announced the launch of two new projects in Mumbai. The developer intends to invest over Rs 3,000 crore on the projects. Dinesh Bansal, chairman of UK Realty, said that their two new projects aim to emphasize on high-end living spaces in Mumbai by providing world-class amenities and value to enhance the daily living experience.
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