Stamp duty concession to boost Covid-stricken economy works
Property sales in Greater Mumbai have gone through the roof in recent months, breaking a five-year record for the month attracting NRIs. This is at odds with an economy that is barely recovering from the struggles that followed the nationwide lockdown.
According to the latest data by the Maharashtra state’s Department of Registration and Stamps, a record sales of 14,783 have been registered in the month of December to date. Sales this month are much higher than the one recorded in December 2019, data indicate the total of 6,433 sales in that month. Most of these are apartment sales as per industry sources.
The property transactions saw a major boost soon after the state government decided to bring down the stamp duty on the sale of units from 5% to 2%. Most of the builders absorbed the stamp duty cost and didn’t charge the buyers. That initiative has caused positive momentum, as buyers took advantage of the lower prices builders offered during the pandemic. In addition, developers have also been offering flexible payment options and good discounts to attract customers during a period beset by the pandemic. The reduction in stamp duty along with various other benefits offered have drawn NRIs and other fence-sitters planning to purchase apartments in Mumbai.
According to real estate data and analytics company Liases Foras, the estimated value of the 14,783 sold units in December is around Rs 24,700 crore ($3.35 billion).