According to recent data released by the Maharashtra department of registration and stamps, a whopping 3,244 properties were registered in Mumbai alone until 8.30 pm on March 11. This translates into a staggering Rs 249.42 crore generated in the form of stamp duty and registration fees from these transactions.
The state of Maharashtra witnessed 46,811 conveyance deeds being recorded during the same period. The revenue earned through these transactions amounted to a whopping Rs 877.79 crore. Notably, the state’s stamp duty fee is currently fixed at 6%, along with a 1% registration fee. Apart from these, there are other taxes, such as the metro cess and local body tax, that homebuyers have to pay.
However, women homebuyers have been given a 1% waiver in the stamp duty fee, which is a commendable step towards encouraging women’s participation in the real estate sector.
The real estate industry has been one of the major contributors to the state’s economy, and the recent surge in property registrations is expected to provide a much-needed boost to the sector.
Real estate experts are predicting a surge in property registrations in the high-priced luxury segment, as a new tax on capital gains is set to come into effect from April onwards. The month of February has already witnessed a significant boost in revenue collection in Mumbai, with the highest sales recorded during the same period in the past five years.
Real estate experts expect that the trend will continue through the month of March, with a similarly high revenue collection anticipated. The luxury segment of the real estate market is expected to perform particularly well in the coming months, driven by the favourable tax regime and strong demand.
In an effort to boost confidence among homebuyers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken steps to raise awareness and help buyers protect their investments from getting stuck in stressed projects. MahaRERA is urging homebuyers to only invest in projects that are registered with the regulatory authority and to conduct a thorough background check before making any purchase.
MahaRERA has issued several dos and don’ts for developers to further promote transparency in the real estate industry. These guidelines require developers to make all relevant information available in the public domain, ensuring complete project transparency. In a recent circular, the regulatory authority has also mandated that developers cannot use common bank accounts to pool funds from multiple projects, where 70% of the money belongs to homebuyers.
The move is a relief for homebuyers, who have faced difficulties in the past with their investments getting stuck in incomplete or delayed projects. The real estate industry has been plagued by issues of transparency and accountability, leading to a decline in buyer confidence.
MahaRERA’s efforts to promote transparency and accountability in the industry are expected to go a long way in restoring buyer confidence and promoting growth in the real estate sector. The regulatory authority’s initiatives will also go a long way in ensuring that developers comply with the highest standards of transparency and accountability, thereby minimizing the risk of investments getting stuck in incomplete or stressed projects.
