Last year too was not good for the real estate sector. "Property market is going through a correction phase. This turbulent situation is expected to continue all through 2015, perhaps even longer," said Pankaj Kapoor, managing director, Liases Foras, a property research firm.
The property market is down in Mumbai and its suburbs. As per the state's stamp duty and property registration data, there is a steady decline in property registration, resulting in government revenue plummeting significantly.
According to the data, in January 2015, 22,294 properties, including lease and leave and licence, were registered, generating revenue of Rs402 crore, while in February 2015, 18,601 properties were registered, bringing in Rs332 crore revenue. March saw 22,270 property registrations and Rs431 crore income, and April 23,982 properties and Rs457 crore revenue. In May, the numbers dipped to 21,064 properties and Rs342 crore revenue, while in June, 21,660 properties were registered, generating Rs334 crore revenue.
Last year too was not good for the real estate sector. "Property market is going through a correction phase. This turbulent situation is expected to continue all through 2015, perhaps even longer," said Pankaj Kapoor, managing director, Liases Foras, a property research firm.
Senior government officials in the property registration department told dna that there has been a lukewarm response to purchase of properties. "A majority of registration is lease and leave and licence. Actual buying is quite low. As a result, our revenue is decreasing. We should be generating Rs6,000 crore to Rs8,000 crore revenue a year in Mumbai; the current is Rs4,000 crore and below," said an official.
Sources said a big developer who had recently started a project in Wadala has not been able to sell a single flat. "The property market is so down that big developers too are facing the heat. Some have already started cutting their additional expenditure to survive in the current volatile market," a source added.
Small-time Navi Mumbai developer Anand Shekawant said the market is very tight. "Due to dip in sale, developers are unable to generate adequate funds to execute their projects. The government should bring in clear policies and also reduce the ever-rising taxes," he added.
Nahid Fatema, a lecturer in a suburban college, had booked her dream home six months ago for Rs24 lakh in Nalasopara. "The deal was done but, due to some financial issues, it fizzled out at the last minute. Recently, my agent called me and asked me to buy the same property for Rs21 lakh. It was a pleasant surprise. Now, we are contemplating buying it at the discounted rate," she said.
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