Mumbai, April 2, 2024 - Property registrations in Mumbai witnessed a notable surge, marking an 8% increase in March compared to the same period last year, according to data released by the Maharashtra government. However, despite this uptick in registrations, stamp duty collections experienced an 8% decline, signaling a complex market trend.
The Maharashtra government's data revealed that property registrations climbed to 14,149 in March, up from 13,151 recorded during the corresponding period in the previous year. Yet, stamp duty collections dwindled to Rs 1,126 crore last month, down from Rs 1,226 crore in March 2023. This decline marks the second consecutive month of reduced stamp duty collections, underlining shifting dynamics in the real estate sector.
Knight Frank India, a leading real estate consultancy firm, attributed the drop in stamp duty collections to the extraordinary highs witnessed in FY23. This surge was primarily a response to the government's decision to limit tax deductions on capital gains from residential property sales after March 31, 2023.
Analyzing the data further, Knight Frank India noted that 80% of the registered properties were residential units, with homes and apartments spanning 500 to 1,000 square feet emerging as preferred choices among buyers. Moreover, over 73% of the registered properties were located in the central and western suburbs, highlighting the growing demand for modern amenities and connectivity in these areas.
Shishir Baijal, Chairman of Knight Frank India, expressed optimism about the robust performance of Mumbai's residential real estate sector in March 2024. He emphasized the market's attractiveness to homebuyers, reflected in the consistent rise in property registrations.
In a related development, the Maharashtra government announced its decision to maintain ready reckoner rates, or base rates, unchanged for the fiscal year 2024-25. This decision is expected to stabilize real estate prices and benefit homebuyers, particularly in the affordable segment.
Commenting on the government's decision, Prashant Sharma, President of NAREDCO Maharashtra, lauded the move as a positive step that would enhance market sentiments and stimulate growth in the property sector. He highlighted that the decision to maintain ready reckoner rates unchanged throughout the state in FY24 had contributed to sustaining growth momentum.
It's worth noting that in FY23, ready reckoner rates in all municipal corporations except Mumbai had been increased by 8.8% from April 1, 2022.
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