Mumbai Homebuyers Awaiting Stamp Duty Cut Holdback
Property registration activity in Mumbai, declined in the month of August as homebuyers held their registrations back in anticipation of a possible reduction in stamp duty that was announced by the state government last week. The stamp duty collections for the month of August were over Rs 202 cro
Published -
Sep 1, 2020 8:49 AM
Property registration activity in Mumbai, declined in the month of August as homebuyers held their registrations back in anticipation of a possible reduction in stamp duty that was announced by the state government last week. The stamp duty collections for the month of August were over Rs 202 crore as against Rs 240 crore in July. The activity was led by middle income and affordable housing transactions as the number of deals registered during both the months remained same at 6,489, but the collections declined 16% from the previous month. The collections have improved 17% compared to June--the first complete month of activity since the lockdown--but have not managed to build on the growth witnessed in July registration activity. Also, the monthly stamp duty collection remains less than 50% of Rs 470 crore achieved in February prior to the outbreak of the virus and subsequent lockdowns. According to officials, the collections could have been better than July, but many property buyers may have held their registration back to conclude once the duty gets reduced and save the cost. Last week, the government of Maharashtra reduced the stamp duty on property registrations to 2% for transactions between September 1 and December 31 from current 5%. The stamp duty will be 3% for agreements to be registered between January 1 and March end. While the announcement was made last week, the possibility of this reduction was being discussed for more than a week prior to that resulting in property buyers postponing their registrations to take advantage of lower outgo.
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