You are here: Home » Companies » News
Business Standard

'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

Mumbai | Residential property market

BS Reporter  |  Mumbai 

Mumbai property
Representational image (Photo: Bloomberg)

Only seven per cent of property registrations in 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 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.”

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, May 03 2021. 17:53 IST