Consistent growth in sales during stamp duty cut period: Anarock
Real Estate

Consistent growth in sales during stamp duty cut period: Anarock

The second Covid-19 wave coupled with the expiry of the stamp duty cut period will impact the monthly growth momentum of Mumbai's housing sector. During the period of stamp duty cuts, there was consistent m-o-m (month-on-month) growth in sales.

A new data by Anarock property consultants states that, as per data by Inspector General of Registration (IGR), Maharashtra, the stamp duty cut period between September 2020 to March 2021 saw as many as 80,718 properties registered in Mumbai alone—a growth of 114% against the same period last year (September 2019 to March 2020).

Prashant Thakur, Director and Head—Research, Anarock Property Consultants highlighted that despite the stamp duty cuts in this period, the state government collected almost the same volume of registrations revenue as it did last year in the same period. The total revenue collected stood at Rs 2,914 crore between September 2020 to March 2021 period, while it was Rs 2,958 crore in the corresponding period a year ago.

In short, the increased sales volumes aided by the stamp duty cut helped the government avoid severe revenue loss. Ever since the expiry of the stamp duty cut period from April1 onwards, there has been a marked drop in property registration numbers. Besides the expiry of the stamp duty cut period, the second Covid-19 wave and ensuing restrictions aimed at curtailing the city’s caseload have contributed towards the declining numbers.

Clearly, the stamp duty cut significantly stimulated housing demand in the city. According to Anarock, the government would do well to seriously consider extending it to keep the property sales momentum—and registrations revenue—going. It is an apt time to consider such a move as the second wave has proved to be far more serious than the first one.

Overall, the housing sector is better equipped this time around as more developers have developed digital marketing capabilities and the government has allowed construction activities to continue.

However, the April-June quarter will certainly be impacted by the rapid spread of the virus. Already, restrictions on interstate movement and the call to steel manufacturers and fabricators to allocate their oxygen supplies to the hospitals have put pressure on the supply chain.

Amid these challenges, the stamp duty cut period showcased that housing demand in the financial capital is very healthy. Industry bodies are campaigning with the state government to ensure that this demand is harnessed to everyone's benefit.

The second Covid-19 wave coupled with the expiry of the stamp duty cut period will impact the monthly growth momentum of Mumbai's housing sector. During the period of stamp duty cuts, there was consistent m-o-m (month-on-month) growth in sales. A new data by Anarock property consultants states that, as per data by Inspector General of Registration (IGR), Maharashtra, the stamp duty cut period between September 2020 to March 2021 saw as many as 80,718 properties registered in Mumbai alone—a growth of 114% against the same period last year (September 2019 to March 2020). Prashant Thakur, Director and Head—Research, Anarock Property Consultants highlighted that despite the stamp duty cuts in this period, the state government collected almost the same volume of registrations revenue as it did last year in the same period. The total revenue collected stood at Rs 2,914 crore between September 2020 to March 2021 period, while it was Rs 2,958 crore in the corresponding period a year ago. In short, the increased sales volumes aided by the stamp duty cut helped the government avoid severe revenue loss. Ever since the expiry of the stamp duty cut period from April1 onwards, there has been a marked drop in property registration numbers. Besides the expiry of the stamp duty cut period, the second Covid-19 wave and ensuing restrictions aimed at curtailing the city’s caseload have contributed towards the declining numbers. Clearly, the stamp duty cut significantly stimulated housing demand in the city. According to Anarock, the government would do well to seriously consider extending it to keep the property sales momentum—and registrations revenue—going. It is an apt time to consider such a move as the second wave has proved to be far more serious than the first one. Overall, the housing sector is better equipped this time around as more developers have developed digital marketing capabilities and the government has allowed construction activities to continue. However, the April-June quarter will certainly be impacted by the rapid spread of the virus. Already, restrictions on interstate movement and the call to steel manufacturers and fabricators to allocate their oxygen supplies to the hospitals have put pressure on the supply chain. Amid these challenges, the stamp duty cut period showcased that housing demand in the financial capital is very healthy. Industry bodies are campaigning with the state government to ensure that this demand is harnessed to everyone's benefit.

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