Saturday, 28 January 2023

Registrations of Property in Mumbai goes down by 29% in August

Registrations of Property in Mumbai goes down by 29% in August

As per data from the Inspector General of Registration,

In Maharashtra, around 7,000 property deals registered in Mumbai in August 2021, which is down by 29 percent month-on-month (MoM) compared to July 2021.

The registration number is down by 15 percent compared to August 2019 but 164 percent higher than August 2020 as the second wave of COVID-19 showed a waning trend, analysis by Propstack showed.

As many as 6,737 deals have been registered so far (midday) in August.2021 Registrations were higher than last year because of a low base, analysis by Propstack showed.

More than 9,000 units were registering in July compared to June 2021, when 7,851 units were registered. In May 2021 saw as many as 5,360 registrations, April saw 10,136 properties written, and March, when the stamp duty waiver of 3 percent ended, saw as many as 17,728 registrations.

The Maharashtra government, in December 2020, gave a leeway of four months to homebuyers to register property after payment of stamp duty to stop crowding of registration offices.

These make sure that buyers who had purchased a residence and paid stamp duty on or before 31 March 2021 had an entire window of four months till 31 July 2021, from the particular date from the payment of stamp duty for registering their apartment.

Stamp duty collection is around Rs 420 crore in August 2021, down by 21 percent versus July 2021 but 155 percent up from a year ago. It is down by 10 percent compared to August 2019, an analysis by Propstack showed.

Registrations of Property goes down by 29 in August 1pixabay image

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As for the total value of properties sold, units worth around 9,000 crores were sold in August 2021, down by 21 percent compared to July 2021. The analysis showed that the number is up by 8 percent in August 2019 and increased by 155 percent compared to August 2020.

Real estate consultancy, Knight Frank India, noted that Mumbai BMC region (i.e., Churchgate to Dahisar and Colaba to Mulund) of the registrations for August 2021, 92% of the registered homes were new sales amounting to 6,241 units that were sold in August 2021. Recent home sales have grown from 53% in July 2021, 42% in June 2021, while in April was as low as 7%.

4% share of women homebuyers in new sales in August 2021

The share of women homebuyers in new registrations has been in the low single digits since April 2021 despite the State Government's intention to increase homeownership amongst women by offering a stamp duty concession of 100 bps or 1%.

The allowances offered to women buyers must be increasing further as the number of apartments registered by women's name has not risen to a meaningful proportion. The State Government can experiment with a further 100 bps reduction in stamp duty rates for women homebuyers and see if the registrations pick up as the 200 bps stamp duty savings during a window of January 2021 to March 2021 had witnessed strong sales. It will not just help the cause of increasing homeownership amongst women but also aid the sector, the consultant said.

In absolute terms, the number of apartments sold in the Rs 1 crore and below category in August 2021 has grown by 6.9 times compared to April 2021.

"Real estate sales in Mumbai have bounced back strongly after the pandemic. Going by the rise in fresh sales during the month which has consistently grown since April along with the significant rise of sales of homes priced upto Rs 1 crore, we can safely say that the real demand has put the woes of the second wave behind. With the upcoming festive season and the expected economic revival along with improved vaccinations, we expect this sales momentum to grow stronger. We believe that the time is suitable for the state government to offer further concessions to improve homeownership especially amongst women to provide fillip to this category of homebuyers," said Shishir Baijal, chairman and managing director, Knight Frank India.

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