Stamp duty revenues cross ₹1,000 crore in February

Mumbai: Despite headwinds like rising repo rate, mounting home loan EMIs, rising property prices and a 1% metro cess in stamp duty rate, property registrations and revenues witnessed a substantial rise in February, with 9,268 housing units registered and stamp duty revenue of ₹1,084 crore, as per a report by Knight Frank India, a property consultant

Mumbai: Despite headwinds like rising repo rate, mounting home loan EMIs, rising property prices and a 1% metro cess in stamp duty rate, property registrations and revenues witnessed a substantial rise in February, with 9,268 housing units registered and stamp duty revenue of ₹1,084 crore, as per a report by Knight Frank India, a property consultant.

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Of the total properties registered, 82% were residential, while 18% were non-residential properties.

“Last month, 8,694 units were registered, while the stamp duty revenue collected stood at ₹658 crore in Mumbai. More than 80% of the increase in the revenue collection is due to a rise in sales in high-end apartments,” the report said.

The repo rate has shot up from 4% in January 2022 to 6.50% in February leading to a significant rise in home loan interest rates and a sharp rise in Equated Monthly Instalments paid by home buyers. Industry experts had estimated that if home loan interest continues to rise, it could have a negative impact on sales velocity.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “The state exchequer made significant revenues from property registration due to a rise in the average value of properties registered in February 2023. This month, the average value of properties registered was recorded at ₹1.9 crore which is 65% more than the average value of properties registered in February 2022 at ₹1.18 crore.”

“Besides, the rise in value, the contribution from the metro cess has also added to the revenues. This has led to a decadal high revenue collection for the month of February at an average of ₹39 Cr per day. This is an indicator of the buoyancy in the mid and high-end segment, which continues to show strength despite headwinds,” he said.

In February 2023, apartments measuring 500 sq ft to 1,000 sq. ft. continued to be purchasers’ preference, accounting for 45% of all apartments. Apartments with less than 500 sq. ft. saw a marginal decline in market share from 35% to 34% month on month. The share take-up for areas larger than 1,000 sq. ft. increased from 17% to 21% in February 2023, the report said.