Mumbai's revenue from property registration crosses ₹1,000 cr-mark in Feb
2 min read . Updated: 01 Mar 2023, 11:06 AM IST
Premium- Mumbai's revenue collections from property registrations scaled up at ₹1,102 crore in February this year--79% jump against last year
India's financial capital Mumbai has witnessed a new record in revenue collection from property registration in the last five years. Mumbai's revenue collections from property registrations scaled up at ₹1,102 crore in February this year--79% jump against last year. In February 2022, the revenue collection from property stood at ₹615 crore.
Inspector General of Registration (IGR), Maharashtra said, "Total revenue collected through stamp duty and registration fees in Mumbai in February 2023 is over ₹1,102 crore while back in February 2022 it was approx. ₹615 crore".
A report by ANAROCK Property Consultants Pvt Ltd mentioned that February 2023 has seen the highest revenue collection in Mumbai in the last five years during the same month and in the entire FY2023.
In contrast, the total number of property registrations dropped by 8% in a year--from 10,379 registrations in February 2022 to nearly 9,511 registrations in 2023 February.
According to the ANAROCK report, luxury home sales performed well in 2022. As per the data, the share of the total sales in the top seven cities went up to 18% of 3.65 lakh units sold against just 7% of over 2.61 lakh units sold back in 2019.
Mumbai's luxury housing sales share increased from 13% in 2019 to nearly 30% in 2022, the report added. In Delhi-NCR, the sales share rose to 15% (of approx. 63,710 units) in 2022, from 4% (of the total 46,920 units sold) in 2019.
“Interestingly, even while revenue collections went up significantly in the period in Mumbai, the total number of property registrations saw a drop of 8% in the year – from 10,379 total registrations in February 2022 to nearly 9,511 registrations in February 2023. This clearly indicates that the sale of big-ticket price homes (i.e. luxury homes) saw significant movement," Anuj Puri, Chairman- of ANAROCK Group said.
The key reason behind the high sales of big-ticket price homes in cities could be the Centre's latest announcement in the Budget wherein the FM proposed to cap capital gains at ₹10 crore from April. "To save tax on capital gains, the HNIs across top cities including Mumbai are rushing to close luxury housing deals before the financial year ends in March," the property consultant said.
Under this new move, if one sells a house/other assets including equities and his/her gains are more than ₹10 crore, then the maximum benefit that can be availed is only up to ₹10 crore when invested into another property. Capital gains of over ₹10 crore will henceforth be taxed from April 2023.
Previously, to save on tax from their capital gains, HNIs/ultra-HNIs would mostly re-invest into an ultra-luxury property. Thus, the new move could be a deterrent for luxury housing sales to an extent once the new provision comes into effect.