At ₹8,800 cr, property sale revenue highest in 10 years

Property sale registrations touched 9,182 units in December 2022, taking the annual numbers to a record 1.21 lakh and government’s revenue collection from registrations and stamp duty to ₹8,800 crore, the highest in 10 years, said international property consultants Knight Frank India in its latest assessment

Mumbai: Property sale registrations touched 9,182 units in December 2022, taking the annual numbers to a record 1.21 lakh and government’s revenue collection from registrations and stamp duty to ₹8,800 crore, the highest in 10 years, said international property consultants Knight Frank India in its latest assessment.

HT Image

In the post-Covid phase, the sales have crossed one lakh units each in 2021 and 2022, notching a two per cent month-on-month growth. This has led to a rise in the revenue collection by 20 per cent month-on-month, the report indicated.

“Devoid of any government incentives and faced with headwinds, 2022 has recorded a nine per cent year-on-year (YoY) growth in registrations backed by strong demand, steady income and positive economic growth. The revival of the residential market has ultimately benefited the state government which recorded the annual revenue collection from property registrations in Mumbai amounting to ₹8,887 crore in 2022,” the Knight Frank report said. (See graphic)

At ₹821 crore, December 2022 also clocked the highest revenue collection in registration fees and stamp duty charges compared to ₹759 crore in December 2021, ₹681 crore in 2020, and ₹542 crore in pre-pandemic December 2019. In December 2020, the stamp duty cuts were in place whereas an additional one per cent metro cess was added to the stamp duty changes in April 2022. Eighty four per cent of the properties registered in December 2022 are residential deals.

The Knight Frank report said there was a marginal shift towards smaller carpet areas in apartments in December 2022. “Apartments ranging from 500-1,000 sq ft area continued to remain the preferred choice in 2022 recording a share of 47 per cent. Those under 500 sq ft area recorded an uptick in share from 34 per cent in 2021 to 37 per cent in 2022. Over 1000 sq ft area recorded a share of 16 per cent in 2022,” the report said.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “Mumbai’s residential market is in a growth mode due to two factors – the changed attitude towards home purchases since the pandemic, which has continued and secondly, economic growth leading to incremental income and financial stability. Thus, despite higher home loan rates, no sops from the state government or rise in capital values over the last year, demand has remained strong.”