Property registrations in Mumbai, declined in the month of August in comparison to the previous month, as the benefit of a reduced stamp duty which was previously offered by the government of Maharashtra to new home buyers no longer exists.
However, registrations continue to grow as compared to previous year because of the purchases made by women who were offered a cut of 1 % in the Stamp Duty.
According to the data released by the Inspector General of Registration of Maharashtra, there were 6,635 deals registered in the month of August, which caused a 32 % decrease in registration in comparison to the month of July and an overall increment of 135% since last year.
The government had offered the benefit of a lower stamp duty to new home buyers, which ended in the month of July. Post that the government had also given a four-month window for the registration of deals in cases where stamp duty was paid before March end. This four-month relaxation period also expired in July.
The property brokers believe that the deal flow has slowed down as many people anticipate a cut in the stamp duty. Moreover, developers themselves are quite keen to see a reduction and are ready to offer the benefit in equal amounts.
Mr. Rajan Bandelkar, president-elect of the NAREDCO stated that the government should reduce the stamp duty as it would be beneficial for all stakeholders. He also mentioned that the NAREDCO members will match the quantum of reduction by offering a good benefit to the buyers.
The registration in the month of August was largely because of the government’s decision of reducing the stamp duty for female home buyers.
The Maharashtra government also announced a 1 % concession in stamp duty for women home buyers on International Women’s Day (8th March) for the financial year 2021-22. The share of female buyers has been increasing due to the concession given by government.
Apart from it, various banks are also offering home loans at lower rate to women as compared to men. While the interest rates vary across banks, the difference is as much as a quarter percentage point.