Mumbai property market almost down by 80 per cent due to coronavirus crisis

Along with the decline in revenue, the number of property registration also plummeted this year in lockdown.
For representational purposes
For representational purposes

MUMBAI: Mumbai property the market is down by almost 80 per cent due to the pandemic situation, and lockdown.

According to the stamp duty and registration department, in April, 2019, the government had earned Rs.460 crore revenue through stamp duty and registrations against zero revenue in April 2020 while in May, 2019, Rs.533 crore revenue against Rs.16 crore in the same month in 2020.

"In June 2019, the total earned revenue was Rs.452 crore against Rs.153 crore in June 2020 and in July 2019, the earned revenue is Rs.452 crore against Rs.214 crore in same the month of this year," revealed in the government documents.

Along with the decline in revenue, the number of property registration also plummeted this year in lockdown. In April 2019, the 5748 properties were registered against zero in the same month in this year while in May 2019, total 5640 properties registered against only 207 in May 2020. Moreover, in June 2019, 6270 properties registered against 1839 in June 2020 while in July 2019, 5940 documents registered against 2623 in July 2020.

Rajesh Prajapati, spokesperson of Maharashtra Chamber of Housing Industry (MCHI)- CREDAI said that the pandemic situation and lockdown are the two major reason behind less number of property registration. He said that the property market will revive once the restrictions of the lockdown are eased. "We are confident that the market will revive. The migrant workers are coming back and the people are also feeling that the home is very important that not only gives the security but gives the safety investment net," Prajapati said.

Pankaj Kapoor, MD at Mumbai based Laisa's Foras, the real estate research firm said that the property market works on sentiments. "If there are not robust and positive sentiments in the market, then people who will think twice before parking it in the property market. In the prolonged lockdown, many businesses suffered badly and resulting in people losing the jobs, so buying the house is the second priority in the crisis. People are more concerned about their livelihood than the buying of any property at this moment," Kapoor said.

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