MMR witnesses property sale transactions worth Rs.11,000 crore in May 2021

As per the CRE Matrix property tracker and data available from IGR Maharashtra as on 30th May 2021, the Mumbai Metropolitan Region (MMR) recorded property sale transactions worth Rs. 10,979 cr in May 2021 as compared to Rs. 22,507 cr in April 2021. The property sale transactions registered in MMR in March 2021, February 2021 and January 2021 were Rs. 44,167 cr, Rs. 21,696 cr and Rs. 21,484 cr respectively.

As on 30th May 2021, Mumbai had recorded property sale transactions worth Rs. 7,246 cr in May 2021 as compared to Rs. 16,250 cr in April 2021. The property sale transactions registered in Mumbai in March 2021, February 2021 and January 2021 were Rs. 28,961 cr, Rs. 12,989 cr and Rs. 12,890 cr respectively.

As per the data from IGR Maharashtra as on 30th May 2021, the stamp duty collection in MMR for the month of May 2021 was Rs 417 cr as compared to Rs. 725 cr in April 2021. Whereas the stamp duty collection in MMR for the month of March 2021, February 2021 and January 2021 were 1365 cr, 648 cr and 570 cr respectively.

As for stamp duty collection in Mumbai, Rs 250 cr were collected in May 2021 (till 30th May) as compared to Rs. 492 cr in April 2021. Whereas the stamp duty collection in MMR for the month of March 2021, February 2021 and January 2021 were 830 cr, 348 cr and 298 cr respectively.  

Due to the impact of the second wave of Covid-19 and the Maharashtra Government's decision to discontinue the stamp duty waiver on property registrations from April 2021, there has been a decline in the property sales in the months of April and May 2021. Here is what real estate experts have to say:  

Mr. Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty, Hon. Secretary, CREDAI MCHI
"Although factors such as reduction in stamp duty, all time low home loan rates, developers offering discounts and payment flexibility helped in the resurgence for real estate demand in the previous quarters; the devastating second wave of the pandemic proved to be a disaster in the decline of the property sale transactions in the last two months.  
The second wave which has been more deadly than the first wave made the homebuyers more cautious to save money for emergencies rather than investing in properties.  Amid the sudden surge in Covid cases and the various curbs due to the lockdown in the State, the sector faced a gradual slowdown which made it extremely difficult to sustain the momentum. Looking at the record transactions in the previous quarters where the homebuyers took advantage of the stamp duty benefit before the March deadline, we urge the Government to reconsider their decision on the stamp duty waiver in interest of the homebuyers again."

Mr. Ashok Mohanani, President, NAREDCO Maharashtra
"We have started witnessing a 50% dip in property sales after the Maharashtra government restored stamp duty back to 5% in Mumbai and 6% in the rest of Maharashtra, from April 2021. The sales registered in the month of April & May are due to the overflow of registrations from the previous quarter where many homebuyers took advantage of the stamp duty benefit before the March deadline and registered their properties later. The Maharashtra Government had allowed to pay the stamp duty and register the properties by giving an extension of four months. The buyer sentiments are down from the past two months due to the second wave of the pandemic, lockdown restrictions and a halt in the economic activities. We have already seen a positive impact of the stamp duty booster which significantly stimulated housing demand in the city in the previous quarters. We urge the government to reconsider and trim it down for another year, until March 2022. There is still demand among the homebuyers, and we believe the numbers will see a gradual uptick once the unlocking in the State happens."

Mr. Ram Naik, Executive Director, The Guardians Real Estate Advisory
"For the second consecutive month in a row, the real estate sector faced a dip in sales due to the second wave of the pandemic. Even the festive occasions of Gudi Padwa and Akshaya Tritiya saw buyers shying away from auspicious purchases due to the surge in COVID-19 cases. Like the previous time, this year too, the pandemic has cast a gloom on the real estate business as people have stayed away from buying new homes. The second wave played havoc on the nation and the extension of lockdown across the state significantly marred public sentiment. With the temporary reduction in transaction costs being withdrawn, in states like Maharashtra, the expectation amongst stakeholders of the industry is that the Government should continue the relaxations, at least till such time that the economy gets back to the pre-COVID levels."