Compared to April, realty bookings in Mumbai down 47% in May

The Covid-19 lockdown has adversely affected the realty sector in Mumbai with only 5,360 properties registered in May, which is a 47% decline from April’s 10,136 registrations

The Covid-19 lockdown has adversely affected the realty sector in Mumbai with only 5,360 properties registered in May, which is a 47% decline from April’s 10,136 registrations.

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Experts have attributed the decline to the lockdown, accompanied by the loss of business as well as negative sentiments among the homebuyers.

According to Gulam Zia, executive director, Knight Frank India, “The registration volumes in Mumbai have been impacted because of restrictions in movement owing to the lockdown. With the government allowing a maximum period of four months to register a sale after paying the stamp duty, buyers have not flocked to the registration office to conclude their deals. Many of the deals registered in May have been those that were concluded in the previous months when the stamp duty was lower,” he said.

Anand Gupta, chairman, Builders Association of India (housing and Rera committee) blamed the negative sentiments for this slowdown. “The real estate sector works on sentiments and the second wave has significantly dampened the sentiments of the homebuyers. The whole economic activity has come to a standstill and buying a house is now a last priority for citizens,” said Gupta.

Last August, the government announced its decision to reduce stamp duty levied on the sale of properties to 2% from September 1 to December 31, 2020, and then reduced it further to 3% from January 1 till March 31, 2021. The move had played a huge role in boosting the sales of both primary and secondary market. The state, however, refused to extend the cut despite several requests.

Manju Yagnik, vice-chairperson of a leading realty company, Nahar Group, demanded that the stamp duty cut be reintroduced.

“The present lockdown situation has slowed down the demand and affected the sales of new properties. The state government should introduce stamp duty cuts to bring back the momentum and help the realty sector to tide over the crisis,” said Yagnik.