Luxury homes in Mumbai lift February registrations revenue 80% over last year

MUMBAI: Revenue collection from property registrations in the city in February touched a five-year high. Data collated from the inspector general of registration shows the collection reached Rs 1,102 crore, a 79% jump from Rs 615 crore in February 2022.
"The number of registrations saw a drop of 8% (from Feb 2022) to nearly 9,511. This indicates that the sale of big-ticket price homes saw significant movement," Anuj Puri, chairman, ANAROCK Group, said. A major factor could be the Budget proposal to cap long-term capital gains at Rs 10 crore for tax-saving purposes when reinvested in housing property, according to ANAROCK.

'HNIs want to close deals before April'
Revenue collection from property registrations in the city in February was the highest for any month this financial year. "If we deep-dive into data further, February 2023 has seen the highest revenue collection in Mumbai in the last five years during the same month," Anuj Puri, chairman, ANAROCK Group, said.
The cap on long-term capital gains rollover announced in the Union Budget will come into effect from April. "Thus, to save tax on capital gains, HNIs [high net-worth individuals] across top cities, including Mumbai, are rushing in to close luxury housing deals before the financial year ends in March," ANAROCK said.
From April, if one sells a house or other asset, including equities, and the long-term capital gains exceed Rs 10 crore, then the maximum benefit is only up to Rs 10 crore if invested in property.
The ANAROCK report released on Tuesday said the luxury housing segment in the top seven cities recorded healthy sales.
"Out of the total 3.65 lakh units sold across the top 7 cities in 2022, about 18% (approx. 65,680 units) were in the luxury category priced Rs 1.5 crore. Contrastingly, of the total 2.61 lakh units sold in entire 2019, just 7% (approx. 17,740 units) were in the luxury category," the ANAROCK report said. MMR, NCR and Hyderabad led luxury home sales in 2022 with about 50,100 units sold in the three altogether. In 2019, the figure was 14,050 luxury homes. TNN