According to the Inspector General of Registration, approximately 11,744 property transactions were registered in April in the country’s financial Centre. Maharashtra. While registration increased by 16%, income increased by 43% to Rs 738 crore, a ten-year record for April.
Despite a rise in quick combo and stamp duty rates, the property registration market in Mumbai, the country’s largest and most expensive real estate market, has continued to break records. In April, the highest monthly transactions were made in the market’s history.
According to figures from the Inspector General of Registration, Maharashtra, the country’s financial capital, saw the registration of over 11,744 property transactions in April, making it one of the greatest days in history.
The number of registrations went up 16% from last year, and the state’s income went up 43% to Rs 738 crore, the highest amount in ten years. “An increase in sales volume and new property registrations without a tax incentive indicates actual end-user housing demand.
The three-year stamp duty exemption on capital gains has also boosted residential real estate investment. To maintain this pace, controlling commodity inflation is required.” said Niranjan Hiranandani, National Vice Chairman of NAREDCO.
Interestingly, mid-income and inexpensive home categories performed well despite the state government raising ready reckoner values and stamp duty rates on April 1, 2022. Luxury homes worth more than Rs 10 crore made up 1% of all purchases.
Other elements like pricing, home loan rates, family income and savings, financial stability, etc. have stayed unchanged, encouraging purchasers to complete their purchases despite the metro cess hike.
“We anticipate this mentality to continue despite growing inflation and geopolitical difficulties since property ownership is seen as a safety net,” says Knight Frank India CMD, Shishir Baijal. 45 percent of registrations in this sector were for houses costing less than Rs 1 crore.
These properties accounted for 39% of all transactions, while those valued at Rs 2.5-5 crore accounted for 10%. Residential sales of above Rs 5 crore accounted for 5% of all residential deals last month.
The greatest April month ever was April 2022, with 11,744 property sales registered, followed by April 2021, with 10,136. March 2021 saw more sales because the 3 percent stamp duty waiver was no longer available.
March 2022 saw more sales because an extra 1 percent metro cess was added. There were still many people who wanted to live in apartments of 500–1,000 square feet, accounting for 47% of all registrations, closely followed by 500 square-foot apartments (36%).
The government earlier announced a 100% property tax exemption for properties under 500 sq ft, which could further encourage the cheap housing sector. Knight Frank India statistics revealed that 15% of all registrations were for 1,000–2,000 sq ft apartments.
Many buyers took advantage of the early reporting deadline in March and the later registration deadline in April, essentially saving 1 percent in metro cess on their purchases.
Beginning on April 1, the state government announced a 5% increase in rental rates, particularly for older properties, across Maharashtra, with the increase taking effect immediately.
As a result of the updated rates, especially among older rates, the largest average increase will be seen in the Thane municipal area, where rates will rise by 9.48 percent on average, while prices in greater Mumbai will rise by 2.34 percent, according to the rates.
In addition to this, the government has imposed a 1 percent metro cess on stamp duty in Mumbai, which has increased the cost of purchasing real estate in the city.
Following the state government’s announcement of a limited-time stamp duty decrease, Mumbai has been setting new records in the city’s real estate transactions in recent months.
The considerable but limited-time stamp duty discount window, which concluded on March 31, 2021, was a motivator for the city’s residential market, which has since recovered. Even though stamp duty rebates are no longer available, the bargains have continued to come in.
Edited By: Khushi Thakur
Published By: Shubham Ghulaxe
