'Only 7% property registrations in Mumbai in April new residential sales'

Fresh demand was affected due to the second wave of the Covid pandemic and expiry of the reduced stamp duty period, according to Knight Frank India

Only seven per cent of property registrations in Mumbai were from new residential sales and 93 per cent of registrations were from transactions between December 2020 and March 2021, for which applicable stamp duties were paid during the lower rate window, said a report by Knight Frank. 

The Maharashtra state government in December 2020 had given a leeway of four months to homebuyers to register a property after the payment of stamp duty in order to prevent crowding of registration offices. This ensured that homebuyers who had purchased residences and paid stamp duty on or before March 31, 2021, have maximum window of 4 months till July 31, 2021 from the respective date of payment of stamp duty for registering their apartment. 

There had been a very sharp pick up in property registrations in Mumbai between September 2020-March 2021 during the 7 months of concessional stamp duty window, hence, when the state government reverted to the previous stamp duty regime, sales momentum was expected to moderate post March 31, 2021. But the fall in momentum has been exacerbated by the second wave of Covid-19 and the ensuing lockdown, Knight Frank said.

Shishir Baijal, Chairman & Managing Director, Knight Frank India: “In April 2021, as the government withdrew the reduction in stamp duty, coinciding with the second wave of the pandemic resulting in a virtual lockdown, demand and sales of new homes was severely impacted. Therefore, we sincerely feel that the State Government, at an opportune time, should reconsider measures to reinvigorate demand such as reduction in stamp duty to bring back the momentum and help the sector tide over the crisis.”