Mumbai stamp duty collection at a 10-year high in April 2023, property registrations dip

According to Knight Frank India, Mumbai city saw property sales registration of 10,514 units in April 2023, adding over Rs 900 crore to the state exchequer, registering its highest ever revenue collection for the month of April in the last 10 years.

The growth in revenues, it said, was because of an increased stamp duty rate and surge in higher-value property transactions. In April last year, 11,743 units were sold, yielding the state Rs 738 crore in revenue. Out of the total properties registered in April, 83% were residential while 17% were non-residential.

Sandeep Runwal - President, NAREDCO Maharashtra?said,?"We have seen healthy growth in the revenue collections for April 2023. A slew of positive policies and measures initiated by the government played a pivotal role in sustaining housing sales. Although the rising interest rates were a concern for a while, the recent pause in the repo rate hike has given homebuyers much-needed relief.?This in addition to the recent government’s decision to not raise the Ready Reckoner (RR) rates for the year 2023-24 has boosted the homebuyers' sentiments. We hope that these positive developments will keep the homebuyers encouraged to come forward and buy their dream home."

Khetsi Barot - Director, The Guardians Real Estate Advisory?said,?"The surge in property registrations and revenues in Mumbai is a testament to the strength, resilience, and potential of the real estate sector. This is an encouraging sign that the real estate industry is on the rise despite trying times and suggests that a strong recovery is right around the corner. It is clear that the long-term prospects of the industry are very positive."

Pritam Chivukula – Vice President, CREDAI-MCHI and Co-Founder & Director, Tridhaatu Realty?said,?"The Mumbai real estate market has remained steadfast in its growth trajectory and this is amply reflected in the April 2023 property registrations as well. We can attribute this to some positive policy measures taken by the government like the recent decision to keep repo rates unchanged which has given a thrust to the entire housing sector.?Earlier, the decision of the government not to raise the ready reckoner (RR) rates in the state for 2023 -24 was a welcome move which improved the home buyer sentiments. We hope the government brings down stamp duty rates which will be a major relief to home buyers; fulfilling their long cherished dream of owning their own home."

Bigger apartments stole the show during the month, with the share of houses larger than 2,000 square feet rising to 10 per cent from 2 per cent last April, and 3 per cent in March of this year.

Small houses - houses with a size of up to 500 square feet - saw a dip, with its share falling to 32 per cent from 36 per cent year ago, and 34 per cent in March.