Winning Bizness Desk
Mumbai. The capital city of India - Mumbai - is considered to be the largest and costliest real estate market in the country. Now this market of real estate has created a new record in the month of April by collecting the highest ever revenue coming through stamp duty. Even though the deals in the real estate sector decreased and property registrations declined during the month, there has been a tremendous increase in the collection from stamp duty. According to the information received, the flats were sold less, but were sold at higher prices, due to which the collection of stamp duty reached a record breaking height. According to a Knight Frank India report, property registrations in the Mumbai Metropolitan Region declined by 10 per cent to 10,514 units in April. In the city of Mumbai, 11,743 properties were registered during the month of April last year. This area comes under the jurisdiction of Brihanmumbai Municipal Corporation (BMC). However, the income from property registration has increased during this period. Knight Frank has reported that 10,514 properties were registered in Mumbai city in April 2023, which fetched Rs 900 crore to the state's revenue. This is 15 percent more than a year ago. On the registration of the property, the government earns from stamp duty in the treasury. This figure of collection from stamp duty in Mumbai is the highest revenue collection in April in the last 10 years.
Impact of Stamp Duty hike
Knight Frank said that this increase in revenue was due to increase in stamp duty rate and expensive property deals. As per reports, the highest stamp duty collection was from high-value deals. And during the month of April, apart from premium real estate, the mid-income housing segment also earned a lot of money for the government exchequer. However, due to high interest rates and rising house prices, there was a negative impact. For this reason the number of registration cases decreased.
40% properties sold since September 2020
Shishir Baijal, chairman and managing director of Knight Frank India, said that the demand for homes in Mumbai has increased because of the hike in stamp duty, continuous increase in interest rates and rise in house prices. From April 2013 till now i.e. during the last 10 years, around 8 lakh properties have been sold in Mumbai. Out of these, 40 percent i.e. about 3.18 lakh properties have been sold since September 2020 till now. Since September 2020, there has been a change regarding stamp duty. According to reports, even after the stamp duty has reached a historic 6 per cent rate, there has been a tremendous sale of properties in Mumbai during the last one year. During April 2022 to April 2023, 1,28,427 properties were registered in the city. This is equal to about 16 percent of the total property registration in the last 10 years.
