Mumbai's stamp duty revenue rises 14% in May despite higher interest rates

Demand for housing remains firm, despite hikes in the interest rates in the last year and a steady rise in housing prices testing homebuyers' appetite to buy

Real Estate, Realty sector, Construction, Realty

Real estate market (Representational image)

BS Web Team New Delhi

Listen to This Article

Despite higher mortgage rates and property prices, Mumbai scaled a new peak in terms of stamp duty collection for the month of May, a report in The Economic Times said. The state exchequer’s revenue from stamp duty collections rose 14 per cent in May from year-on-year (YoY) to around Rs 827 crore at a total of 9,786 deals, according to data from the Inspector General of Registration, Maharashtra.

Demand for housing remains firm, despite hikes in the interest rates in the last year and a steady rise in housing prices testing homebuyers’ appetite to buy. The rise in revenues was attributed to an increase in both mid-income and higher-value property transactions.

Although the majority of the properties registered in May were located in western suburbs and constituted 58 per cent of the market share, sales in South Mumbai saw a big uptick with 10 per cent in the month when compared to five per cent a year ago.

“The demand continues to be solid as most enquiries are translating into actual sales in a relatively shorter lead time,” Jaxay Shah, CMD, Savvy Group told the Economic Times. “While prices are steady and have been showing an uptick in the last couple of months, the right mix of location and configuration is ensuring conversion. The change brought in by the pandemic in terms of preference for home buying has managed to keep the sentiment robust.”

The firm has ventured into the Mumbai real estate market and has recently launched the Andheri project, which received a positive response.

The share for properties larger than 1,000 sq ft r grew to 24 per cent in May from 18 per cent a year ago. 

Also Read

Private jets to jewellery: Customs duty to be hiked on 35 items in Budget

Private banks slower than public sector banks in raising interest rates

Finance ministry issues clarification over STT hike on selling options

The tax rule to know when you partner with relative to buy property

Budget 2023-24: Govt mulls basic Customs duty cut to align with FTA

Skyrocketing airfares: GoFirst's absence, thunderstorms, demand to blame

Sporadic rains hurt sales of summer products, firms counting on June

Pace of credit to MSMEs moderates in April: Reserve Bank of India

OTT platforms to display anti-tobacco warnings similar to cinema theatres

Govt spectrum usage charge collection halves to Rs 811 cr, AGR up 14%

First Published: Jun 01 2023 | 12:29 PM IST

Explore News