Mumbai property registrations see sharp recovery in October; up 36% YoY – ET RealEstate

Residential property sales in Mumbai, the country’s hottest property market, has registered a sharp recovery with an over 36% on-year jump in October led by the stamp duty reduction and discounts offered by realty developers.

In an indication of a robust revival from pre-Covid level, the registration of apartments rose 34% from levels witnessed in February, showed data from the office of the Inspector General of Registration Maharashtra. The October performance is the fourth highest monthly sales registration volume and value since April 2013.

“The registration numbers highlight that the combination of three factors – a discount of 5 to 15% by developers, stamp duty reduction by the state government and low interest rate regime is certainly giving a boost to sales this festive season,” said Sandeep Reddy, director, Propstack. Value of home sales in October rose 31% from a year ago to Rs 11,640 crore, while the growth from pre-Covid level seen in February stood at 33%.

“Sales activity has surpassed pre-Covid level and we are witnessing faster deal conversions owing to stamp duty reduction. Homebuyers’ response in the last few weeks can be attributed to the overall financial benefit worth 8-17% of the property cost. Festive sales will see further push from here,” said Rajan Bandelkar, MD, Raunak Group.

While the home sales activity in the country’s most expensive property market has recovered sharply from a year ago as well as pre-Covid levels, stamp duty collection has declined given the reduction in rates announced by the state government. In October, the stamp duty collection stood at Rs 233 crore as against Rs 438 crore in February and Rs 443 crore in October 2019. However, it has increased from last month’s collections of Rs 181 crore. In August, the government of Maharashtra had announced reduction in stamp duty on property registrations to 2% for transactions between September 1 and December 31 from 5% earlier.

The stamp duty will be 3% for agreements to be registered between January 1 and March end. The stamp duty reduction has not only helped converting pent up demand in mid-income and affordable segment, but has also promoted conclusion of several large-ticket transactions in the city and the trend is expected to pick up further during the ongoing festive season.

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Maharashtra’s stamp duty cut leads to 75% rise in home buying in Nagpur – ET RealEstate

NAGPUR: The stamp duty cut by state government has spurred realty transactions in the city. The move has halved the effective stamp duty rate levied on purchase of property to 3% in the city against 6% earlier.

The current rates are effective from September 1 to December 31, 2020. In September itself, there was a 75% increase in the number of sale deeds registered in the city compared to that in August. The data for October is yet to be complied but sources said that the trend was expected to continue.

Builders said there was a major jump in the mid to low priced housing segment, with many who had held up the buying quickly inking the deals.

The increase in registrations indicates the rise in property dealings. Stamp duty has to be paid along with registration and is levied over purchase of property.

As against 3,942 sale deeds registered in August, more than 6,500 were registered in September, a hike of 75%. The duty collection too has grown by over 13% in September over August figures. In September, Rs 40 crore was collected against Rs 35 crore in August, according to data shared by the registrar’s office here.

The collection, though, is still less than the monthly target. Due to the pandemic, the department has not been issued fresh targets for the fiscal. As it continues with the previous year’s targets, the achievement on monthly basis is lagging.

With yearly target of Rs 785 crore, the average monthly duty collection is expected to be in the range of Rs 65 to 60 crore. At Rs 40 crore, September collections are thus behind the target. This is due to the reduction in rate of duty, said officials.
Maharashtra's stamp duty cut leads to 75% rise in home buying in NagpurThe lockdown in March had brought down property transactions to negligible levels. Only eight deeds were registered in the month of April. In May, there was a jump and 841 documents were registered. In ,June it was over 3,900 and over 6,100 in July. It again fell to about 3,900 in August, the data revealed.

The total collection so far stands at over Rs 186 crore which is 23% of the target.

Builders said that the duty cut and other moves by the government had indeed spurred realty buying. Gaurav Agarwala, secretary of the Nagpur branch of Confederation of Real Estate Developers Association of India (CREDAI), said majority of the buying was happening in Rs 20 to 80 lakh segment. Apart from stamp duty, there are other factors too, he said.

“The interest rates on home loans are at a 20-year low at around 6.85%. Even developers are looking to sell properties at competitive rates. At present, persons with steady income like salaried class are looking to buy properties. Even the government subsidy on Pradhan Mantri Awas Yojana is available till March next year,” he said.

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Mumbai: BMC plans to demolish ‘dangerous’ buildings in GTB Nagar – ET RealEstate

MUMBAI: The BMC has issued notices to residents of Punjabi Colony in GTB Nagar asking them to move out immediately as the buildings are in dangerous condition and need to be demolished. But many residents are refusing to leave as they don’t have alternate accommodation and cannot afford to pay rent.

The BMC has cut water and electricity supply to some of the buildings marked ‘C1’, meaning they need to be immediately vacated.

Gajanana Bellale, assistant municipal commissioner, F North Ward, said that the BMC, if needed, would use force to vacate the buildings. ”The residents should have either redeveloped their buildings or vacated them already. We can’t provide accommodation to them, it is their responsibility to find one.”

Bellale said the residents had already lost their case in the high court and the Supreme Court and had to leave the premises.

A month ago two of the 25 buildings partially collapsed, which triggered the long-pending eviction issue of the entire colony, Bellale said. According to him, the BMC declared these buildings dangerous four years ago.

When this journalist visited the area, some residents said they suspect the BMC is hand in glove with a developer, who is interested in the redevelopment of the colony – a prime property in Sion Koliwada that is home to 1,219 families.

Developer Vijay Lakhani, who is interested in the redevelopment of the 25 buildings, confirmed that he was helping the residents complete the legal procedures.

“I have helped 17 housing societies get their names on the property cards. Eight societies still don’t have their names on property cards and I am helping them. I even helped them register cooperative housing societies. If the buildings are demolished then it is not going to serve my purpose,” he told Mumbai Mirror.

Several residents who have accounts with the Punjab and Maharashtra Co-operative (PMC) Bank are already struggling financially.

“I used to conduct tuitions and my husband worked as an electrician. We have almost no income since the lockdown. Where will we find another home?” asked Chhaya Vijan, 47, a resident of building number 11.

Indararaj and Lalita Devi have no income. “My husband worked as a priest and that used to bring in some income. Now where will we go?” asked Lalita.

Rakesh Lamba (59), who has diabetes and heart problems, said: ”We knew the building would go for redevelopment one day, but we never thought that the BMC would ask us to vacate it, that forcefully, that too in the middle of a pandemic.”

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MHADA to redevelop Thane police colony, build 1,000 homes – ET RealEstate

MUMBAI: Maharashtra government on Tuesday cleared a long-pending proposal to redevelop dilapidated police colony at Vartak Nagar in Thane, and task MHADA to redevelop these 47-year-old buildings, and construct 1000 homes, some of which will be sold by MHADA in its lottery.

The decision was taken at a meeting chaired by state Housing Minister Jitendra Awhad in Mantralaya. Thane Shiv Sena MLA Pratap Sarnaik, Additional Chief Secretary (Home) Sitaram Kunte, Principal Secretary, Housing SVR Srinivasan, and newly appointed MHADA Vice President and Chief Executive Officer Anil Diggikar were present at the meeting.

MHADA had created housing for different sections in the 1960s out of which 10 buildings were handed to Thane police in 1973 for housing its personnel. Some of these buildings were declared dangerous to live and were demolished. Police personnel and their families continue to live in other dilapidated structures. Some police families were moved out into a state rental housing scheme. The previous government had announced cleared a similar redevelopment proposal with 4 FSI, but it continued to be pending.

The existing buildings have 40 tenements of 474 sq ft carpet area for the middle-income group (MIG), 120 tenements of 365 sq ft area for the lower-income group (LIG), and 400 tenements of 160 sq ft area.

According to the proposal, the total area available for redevelopment would be 61,166.94 sq metres and 5.26 FSI could be applicable as per February 2009 government resolution for the project. If implemented with 5.26 FSI, the 120 low-income group tenements could get a larger carpet area of 484 sq ft, and 400 LIG tenements could 322 sq ft carpet area.

The proposal also said MHADA will construct 1000 homes and after handing over 560, the remaining tenements will be sold by MHADA through its lottery at prevailing market rates. Police personnel will be given priority in the lottery distribution, the proposal said. 30-storey towers are proposed to be built over a three year construction period.

MHADA will have to get environment clearance as the 10 buildings are located in three clusters, and two of the clusters have more than 20,000 sq ft developable area which requires mandatory environment clearance. It will also have to apply for a No Objection Certificate from the National Wildlife Board of India.

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