Mumbai property stamp duty July revenue remains steady despite lower registrations

economictimes.indiatimes.com:

The country’s financial capital witnessed over 10,221 property registrations in the month of July helping generate stamp duty collection worth nearly Rs 831 crore for the state exchequer. In July 2022, the city had seen stamp duty collection of Rs 829 crore on the back of registrations of 11,340, showed data from inspector general of registration, Maharashtra. «The demand in the mid-income and premium segment continues to be robust.

However, the steep hike in mortgage rates implemented since last year has started affecting the interest rate sensitive affordable housing category. It would be an appropriate time to look at the cost of premiums and boost the housing sector to prevent a slowdown,» said Sandeep Runwal, president, NAREDCO — Maharashtra. The increase in property prices, combined with a significant 250-basis-point hike in interest rates since May 2022, has impacted on registrations of properties priced below the Rs 1 crore mark.

However, registrations for properties priced above that mark have remained relatively unaffected by the same, indicating a sustained demand in this higher price segment of the market. “The demand in Mumbai's residential market continues in the face of various challenges as consumers display enthusiasm for homeownership. Notably, there has been a considerable increase in share of properties priced at Rs 1 crore and above.

This can be attributed partly to the growing preference for larger homes and the rise in property prices,” said Shishir Baijal, CMD, Knight Frank India. Even though property registrations in the city experienced a decline in July, the recorded figure of 10,214 units remained notably higher than the twelve-month average of 9,814 units. This indicates the ongoing strength