Reduction in Stamp Duties Increase Property Registrations in Mumbai
With the arrival of the record low housing loan rates, rebates and several cutbacks on stamp duty charges, the registration of properties in Mumbai has shown an increasing trend. The financial capital of India has seen a stark increase of about 70% in property sales in February 2021. The month saw the growth of the ongoing trend as buyers flocked to complete their transactions.
The Deputy Inspector General of Registration said that there has been a sense of urgency amongst homebuyers as most people are looking to take advantage of the government’s new policy. The government has decided that there won’t be any additional costs on property registered within 4 months from the purchase date.
This growth in February 2021 was surprising since there was a hike in stamp duty from 2% to 3%. The registrations in January 2021 had surpassed roughly 69% to a staggering 10,412 deals. The Maharashtra Govt. in August last year had announced that the stamp duty on registration of property will now be reduced to 2% for transactions done between September and December 31st, 2020. The rebate in stamp duty has had a significant impact on the increase in the volume of deals finalized but simultaneously reduced the revenue amount from Rs 437 cr to Rs 350 cr.
Since the announcement of reductions in stamp duty, there has been a sudden jump in transactions made in cities like Pune, Mumbai, and other urban areas of the state. All the 26 offices in the Mumbai region were kept open on all Saturdays by the registrar to control the surge in the number of deals.
