In March of 2023, Mumbai Real Estate Market Sales Climbed The Moon

Mumbai Real Estate Market Sales in March 2023

As of April 1, the deduction from capital gains on investment in residential property will be limited at 10 crore, leading to a significant increase in the sale of opulent properties in Mumbai, the country's largest and most expensive property market.

In the Union Budget 2023-24, the government announced that, beginning with the new fiscal year, the deduction for capital gains on investments in residential real estate will be limited.

Stamp duty collection increased by 8% to over INR 1,203 crore, led by the sale of luxury properties.

The haste of homebuyers in other segments to finalise their transactions prior to a likely increase in stamp duty charges and ready reckoner rates has also driven registration to its highest level in FY23 and the state exchequer's revenue to its best-ever March performance.

Typically, these rates are increased at the start of the new fiscal year. The government has not, however, increased tax rates for FY24.

The state government's revenue from stamp duty collections rose 8% to INR 1,203 crore, according to the inspector general of registration, Maharashtra. There were 13,002 property registrations in the country's commercial capital in March, a 34% increase over February. The number of registrations decreased from more than 16,700 in March 2022.

It has been observed that the quantity of transactions has increased, and that tax-related factors have contributed to the increase in stamp duty revenue. While demand is strong across all market segments, rising interest rates are having a negative impact on affordable and middle-income housing.

In February and March, 2023 the Mumbai luxury real estate market was extremely active with a large number of transactions involving high-priced properties (mostly because of the Capital Gains Capping announcement).

These luxury real estate transactions in Mumbai included some record-breaking transactions, such as the INR 369 crore triplex apartment in the Lodha Malabar super-luxury project in Malabar Hill, South Mumbai.