Mumbai, India records more than 6,000 property registrations in August

Registrations fell 32 percent from July, but over two-and-a-half times increase compared to August last year  

Property registrations in Mumbai contracted in August, as the benefit of a reduced stamp duty rate to new home buyers offered by the Maharashtra government was discontinued, reported ET Realty.com.  

Despite the drop, registrations were higher from a year earlier due to last year’s low base, as well as purchases by women who are given a one percent cut in stamp duty.  

According to data from the Inspector General of Registration, Maharashtra, up to 6,635 deals were registered in August.  

The figure was a 32 percent drop in registrations from July, but more than a two-and-a-half times increase from the 2,642 registrations in August last year.  

The benefit of lower stamp duty announced for new home buyers ended in March.  

Property brokers said that the deal flow has slowed down as people expect that the state government could announce a fresh cut in the duty.  

Additionally, developers are eager to see a reduction in charges, prepared to offer an equal amount of benefit to homebuyers.  

Rajan Bandelkar, the president-elect of National Real Estate Development Council (NAREDCO), said, “We would urge the government to reduce the stamp duty as this would be a win-win situation for all stakeholders including the government exchequer as witnessed in the first round of such a move. We, NAREDCO members, will match the quantum of reduction in stamp duty by the government, thereby offering a good benefit to homebuyers.”  

Nevertheless, the performance in August received some support from the government’s decision to give a duty discount to female homebuyers.  

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To celebrate International Women’s Day on March 8, the government introduced a one percent concession in prevailing stamp duty for women homebuyers for the financial year of 2021-2022.  

Shishir Baijal, chief managing director at Knight Frank India, said, “The percentage contribution of women buyers to the total registrations have been steady between four to five percent since June 2021. While in the first two months the number of women buyers availing this stamp duty were limited, we see a moderate uptick since June. This discounted rate will become attractive specially for end users and first-time female buyers and will encourage others to make their buying decisions.”