Mumbai: Residential property registrations fell by 42 percent to 10,136 units in April as compared to the previous month after the outbreak of the second wave of corona infection in Maharashtra capital Mumbai and reduction in stamp duty charges. Knight Frank India said the decline would have been even greater as 90 per cent of buyers had paid stamp duty before April 1 to take advantage of lower stamp duty on residential properties.
The Maharashtra government had, in fact, reduced the stamp duty by two to three percent from September 2020 to March 2021 to boost the demand for housing amid the Corona epidemic. The state government had also announced to extend the property registration period to four months after filling the stamp duty. Knight Frank reported that 10,000 residential property registrations were registered in April 2021 in Mumbai-based Churchgate to Dahisar and Colaba to Mulund area as against 17,449 units in March.
However, it was also found that only seven per cent of the registrations were from new residential sales during April, while the remaining 93 per cent of the registrations were from properties transferred between December 2020 and March 2021. Shishir Baijal, Chairman Managing Director, Knight Frank India, said, "The residential property sector has recorded a healthy boom during the last few months due to lower stamp duty. However, the stump duty charges contribute a lot to the state government coffers. The move by the state government gave the real estate sector a bit of strength. This step also provided employment and economic stability. ''
He said, "It was a great decision to reduce the stamp duty, which kept the economy of the sector and the state running amidst the Corona epidemic." In April, the state government decided to withdraw the duty on stamp duty and in the meantime a second wave of Corona transition also occurred. Which has severely affected the demand and sale of new homes. ”He also appealed to the state government to reconsider measures to revive the reduction in stamp duty duty.