Maharashtra: Glut-hit property market records decent growth

Though reports of glut have sent a chill through state’s real estate market, it could not slow down the momentum of real estate activities. Furthermore, it has also helped the state government to increase its share of revenue by manyfold.

According to the state government data, in 2017-18, 29.93 lakh property registrations were reported across the state. The jump is noteworthy. In 2013-14, 23 lakh property transactions were registered at the government registration department across the state, while in 2014-15, 22.97 lakh property transactions were registered. In 2015-16 the figures were at 23.08 lakh and in 2016-17, it jumped to 29.12.

The revenue of the state government has also improved drastically. In 2015-16, the total revenue earned through the stamp duty and registration charges were Rs 21,010 crore while it jumped to Rs 26,535 crore in 2017-18.

“In 2016-17, the demonetisation and the subsequent implementations of GST had dampened the spirit of the real estate sector. But it was a temporary glut. Now, the market is back to normal. In fact, the state revenue from stamp duty and registration has gone up. Before 2010-11, the stamp duty and property registration revenue were limited to Rs 10,000 crore bracket only,” said Shyam Sundar Patil, deputy secretary (revenue department).

Manohar Shroff, vice president of Maharashtra Chamber of Housing Industry (Navi Mumbai) said, “Families are expanding, everyone needs a house to live. People are opting for bigger homes. Those who don’t own a house, are investing in the smaller ones. However, the current property market is end-user driven, not the investors driven. Therefore, the price of the houses rate of increase in prices is low,” Shroff added.

REVENUE GROWTH

The revenue of the state government has also improved drastically. In 2015-16, the total revenue earned through the stamp duty and registration charges were Rs 21,010 crore while it jumped to Rs 26,535 crore in 2017-18.