Property Registration & Stamp Duty Revenue Collection Witnesses a Sharp Decline.

property-registration-stamp-duty-revenue-collection-witnesses-a-sharp-decline

The property registration and stamp duty revenue collection in Mumbai and across Maharashtra witnessed a sharp decline. In May, the property registration declined by approximately 70 per cent as compared to March this year.

According to the data with the IGR Maharashtra as on dated May 31, the number of conveyance (sales) document registered in Mumbai was only 5,360 making stamp duty revenue of Rs 268.65 crore. While in March the number of sales conveyance document registered was 17,728 and stamp duty revenue was Rs 874.96 crore. Along with less number of properties registered the stamp duty collection in May reduced by nearly Rs 600 crore as compared to March.

In fact, March was last month to avail the three per cent stamp duty discount therefore, a lot of homebuyers registered their properties to grab the final deal.

Interestingly, not just ordinary homebuyers but even celebrities like Bollywood Super Star Amitabh Bachchan bought property of Rs 31 crore by paying 2 per cent stamp duty charges seizing full advantage of the offer.

Meanwhile, stressing on the slowdown in housing sales and drastic reduction in stamp duty revenue collections for the State Government the real estate body CREDAI MCHI and NAREDCO have urged the state government to reduce the stamp Duty charges back to two and three per cent in Mumbai till March 31, 2022.

Deepak Goradia, President, CREDAI MCHI, said, “The Real Estate sector in Maharashtra and more specifically in Mumbai, was thriving on the back of the stamp duty rebate announced in August 2020. We had requested for an extension of the reduction beyond March 2021 to ensure that the momentum of this industrial and economic revival stays on its tracks. However, in the last couple of months, we’ve seen a steep downward trend in enquiries and sales, hampering not just the steady progress made by Real Estate but also the 250 ancillary industries which come into play due to industry’s strong multiplier effect. It is now imperative that the Govt. realizes the need for a stamp duty rebate to enhance homebuyer sentiments and also increase its own revenue collections which have taken a massive hit in May.”

Besides the decision to discontinue the stamp duty waiver the impact of the second wave of Covid-19 have resulted in decline in the property sales in the months of April and May 2021 are major factors.

Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty Secretary, CREDAI MCHI said, “Although factors such as reduction in stamp duty, all time low home loan rates, developers offering discounts and payment flexibility helped in the resurgence for real estate demand in the previous quarters; the devastating second wave of the pandemic proved to be a disaster in the decline of the property sale transactions in the last two months. The second wave which has been more deadly than the first wave made the homebuyers more cautious to save money for emergencies rather than investing in properties. Amid the sudden surge in Covid cases and the various curbs due to the lockdown in the State, the sector faced a gradual slowdown which made it extremely difficult to sustain the momentum. Looking at the record transactions in the previous quarters where the homebuyers took advantage of the stamp duty benefit before the March deadline, we urge the govt. to reconsider their decision on the stamp duty waiver in interest of the homebuyers again.”_

Ashok Mohanani, President, NAREDCO Maharashtra said that the buyer sentiments are down from the past two months due to the second wave of the pandemic, lockdown restrictions and a halt in the economic activities. “We have already seen a positive impact of the stamp duty booster which significantly stimulated housing demand in the city in the previous quarters. We urge the government to reconsider and trim it down for another year, until March 2022. There is still demand among the homebuyers, and we believe the numbers will see a gradual uptick once the unlocking in the State happens,” he said.

Source: https://m.freepressjournal.in/article/business/property-registration-stamp-duty-revenue-collection-witnesses-a-sharp-decline/bfa2549b-e245-42a1-a12a-372e40efd1fc

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