iStockProperty registration in Mumbai, the country’s biggest and most expensive real estate market, has continued its record-setting spree as it scaled a new peak with highest-ever monthly deals in April despite the hike in ready reckoner and stamp duty rates.
The country’s financial capital witnessed registration of over 11,744 property deals in April, making it one of the highest performances ever, showed data from the Inspector General of Registration, Maharashtra. While registration number rose 16% from a year ago, the state exchequer fetched 43% higher revenue at Rs 738 crore, a 10-year high for the month of April.
"Uptick in sales velocity and record high property registration even in the absence of fiscal incentive is an indicator of real sustainable housing demand from end users. Additionally, Stamp duty waiver on capital gains waived up to 3 years has revived investment sentiment in residential real estate. The need to arrest commodity inflation is signalled to continue this momentum," said Niranjan Hiranandani, vice chairman, NAREDCO National.
Interestingly, the performance was driven by mid-income and affordable housing segments that maintained buoyancy despite the state government implementing hike in ready reckoner values and stamp duty rates from April 1, which has increased the cost of transactions. Luxury properties, valued over Rs 10 crore and more, stood at 1% of total deals.
“Even while outflows towards property purchase have increased due to metro cess, other factors like prices, home loan rates, household income and savings, financial security etc. have remained stable, encouraging buyers to conclude their purchases. We expect these sentiments to continue despite cautions of rising inflation and geo-political challenges, as home ownership is considered a safety net against such challenges,” said Shishir Baijal, CMD, Knight Frank India.
Homebuyers focus remained on properties with a ticket size of Rs 1 crore and below as indicated by 45% of registrations in this segment. Properties priced between Rs 1 crore to 2.5 crore contributed 39% of total deals while Rs 2.5 - 5 crore contributed 10%. Residential properties above Rs 5 crore contributed 5% of the total residential deals during the month.
April 2022 recorded property sale registration of 11,744 units making it the best April month ever, followed by April 2021 when sale registrations of 10,136 units took place. Both were preceded by record high March months, where March 2021 gained traction as it marked the end of stamp duty waiver when 3% stamp duty was applicable, while March 2022 saw higher sales as it was the last month before introduction of additional 1% metro cess.
Homes with size of 500-1,000 sq ft continued to be the preference, accounting for 47% of the total registrations, followed by compact homes of up to 500 sq ft with a share of 36% during the month.
Under 500 sq ft carpet area homes had previously received a government incentive of 100% relief in property tax with effect from February 2022 and this is expected to further incentivize the affordable housing segment. Homes of 1,000-2,000 sq ft accounted for 15% of total registrations, showed Knight Frank India data.
Many homebuyers advanced their purchase by filing in March while registering them in April, effectively saving 1% metro cess on their deals. With effect from April 1, the state government has announced an average hike of 5% in the ready reckoner rates for properties across Maharashtra.
As per the revised ready reckoner rates, the highest increase will be in the Thane municipal limits at an average of 9.48%, while rates in greater Mumbai were increased by 2.34%. In addition to this, the government has also implemented 1% Metro cess on stamp duty in Mumbai, increasing the cost of property acquisition in the city.
Mumbai has been setting new benchmarks with property transactions lately after the state government announced a limited-window stamp duty reduction.
The significant but limited-period stamp duty reduction window that ended on March 31, 2021, was a catalyst for the city’s residential market. While stamp duty rebates are not available now, the deals have continued to flow in.
The country’s financial capital witnessed registration of over 11,744 property deals in April, making it one of the highest performances ever, showed data from the Inspector General of Registration, Maharashtra. While registration number rose 16% from a year ago, the state exchequer fetched 43% higher revenue at Rs 738 crore, a 10-year high for the month of April.
"Uptick in sales velocity and record high property registration even in the absence of fiscal incentive is an indicator of real sustainable housing demand from end users. Additionally, Stamp duty waiver on capital gains waived up to 3 years has revived investment sentiment in residential real estate. The need to arrest commodity inflation is signalled to continue this momentum," said Niranjan Hiranandani, vice chairman, NAREDCO National.
Interestingly, the performance was driven by mid-income and affordable housing segments that maintained buoyancy despite the state government implementing hike in ready reckoner values and stamp duty rates from April 1, which has increased the cost of transactions. Luxury properties, valued over Rs 10 crore and more, stood at 1% of total deals.
“Even while outflows towards property purchase have increased due to metro cess, other factors like prices, home loan rates, household income and savings, financial security etc. have remained stable, encouraging buyers to conclude their purchases. We expect these sentiments to continue despite cautions of rising inflation and geo-political challenges, as home ownership is considered a safety net against such challenges,” said Shishir Baijal, CMD, Knight Frank India.
Homebuyers focus remained on properties with a ticket size of Rs 1 crore and below as indicated by 45% of registrations in this segment. Properties priced between Rs 1 crore to 2.5 crore contributed 39% of total deals while Rs 2.5 - 5 crore contributed 10%. Residential properties above Rs 5 crore contributed 5% of the total residential deals during the month.
April 2022 recorded property sale registration of 11,744 units making it the best April month ever, followed by April 2021 when sale registrations of 10,136 units took place. Both were preceded by record high March months, where March 2021 gained traction as it marked the end of stamp duty waiver when 3% stamp duty was applicable, while March 2022 saw higher sales as it was the last month before introduction of additional 1% metro cess.
Homes with size of 500-1,000 sq ft continued to be the preference, accounting for 47% of the total registrations, followed by compact homes of up to 500 sq ft with a share of 36% during the month.
Under 500 sq ft carpet area homes had previously received a government incentive of 100% relief in property tax with effect from February 2022 and this is expected to further incentivize the affordable housing segment. Homes of 1,000-2,000 sq ft accounted for 15% of total registrations, showed Knight Frank India data.
Many homebuyers advanced their purchase by filing in March while registering them in April, effectively saving 1% metro cess on their deals. With effect from April 1, the state government has announced an average hike of 5% in the ready reckoner rates for properties across Maharashtra.
As per the revised ready reckoner rates, the highest increase will be in the Thane municipal limits at an average of 9.48%, while rates in greater Mumbai were increased by 2.34%. In addition to this, the government has also implemented 1% Metro cess on stamp duty in Mumbai, increasing the cost of property acquisition in the city.
Mumbai has been setting new benchmarks with property transactions lately after the state government announced a limited-window stamp duty reduction.
The significant but limited-period stamp duty reduction window that ended on March 31, 2021, was a catalyst for the city’s residential market. While stamp duty rebates are not available now, the deals have continued to flow in.
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