Mumbai has recorded a historic surge in dwelling sale registrations in the month of December 2020. Total sales registered till December 30, 2020, for the month of December are recorded at 18,854 units, according to Knight Frank India.
The sales especially peaked in the final days of the month with 3059 units becoming registered involving December 28 and December 30, 2020. As the stamp duty is set to improve by 1% beginning January 01, 2021, there was a stupendous improve in registrations in the final couple of days of the year. Till December 25, 2020, the day-to-day typical of quantity of units obtaining registered in the month of December 2020 was at 585 units. This day-to-day typical of registrations almost doubled at 1019 units in the final week involving December 27 and December 30, 2020.
The total income realized by the state exchequer in 2020 from dwelling registration was estimated at Rs 3107 crore. Of the total income, almost 43% (Rs 1350 crore) was realized in the period involving September 1 and December 30, 2020. This can be noticed as a clear indication of the robust influence the reduce in stamp duty prices had on the revenues. The period January 01 – August 30, 2020 recorded a total collection of Rs 1756 crore in the kind of stamp duty from dwelling sales registrations.
The reduction in stamp duty has developed beelines for sales and registration of properties with Mumbai witnessing of the very best sales periods in history. Since the announcement of the reduction of 300 basis points (BPS) beginning September 01, 2020, properties sales have constantly risen month on month. Between the period September 01 and December 30, 2020, Mumbai recorded registration of 41,681units with numbers increasing incrementally month on month.
The month of December 2020 (till Dec 30, 2020) is specifically exceptional as it grew two occasions more than the exact same period final year. While December 2019 noted registrations of 6,433 units, December 2020 saw 18,854 units becoming registered.
Since September 2020 dwelling sales registrations have been witnessing considerable month-on-month development soon after recording degrowth in the initial months of the year. December saw more than one hundred% improve (more than double) in dwelling sales registrations more than November – with a single day to spare for finish of the month –demonstrating the rush of purchasers who intend to take benefit of the lowest feasible stamp duty prices. This rush is probably to spill more than to the ensuing months when the preferential stamp duty prices will be applicable.
While 2019 saw total registration of 67,863 units, registrations in 2020 (till December 30, 2020) have come comfortably close to final year’s level. Total registration from January 01 – December 30, 2020 was recorded at 64,906 units, regardless of the truth that April 2020 saw no sales registrations and May 2020 recorded registration of just about 200 units.
Source: Maharashtra Govt- Dept. of Registrations and Stamps (IGR) Knight Frank India Research
Commenting on the exact same, Shishir Baijal, Chairman & Managing Director, Knight Frank India, mentioned, “The reduction in stamp duty has led to a significant surge in the sales of homes in Maharashtra, particularly in Mumbai, comforting the long-beleaguered real estate sector of this region. A combination of lowest home loan rates, reduced prices along with rebates and offers made by developers, as well as increased household saving rates, have provided the right growth environment for the residential segment to grow. This positive sales momentum is crucial for the developers, who were facing severe liquidity challenges as well as below par valuations for their projects, making it tough for them to raise capital.”