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Real-estate transactions fall, fewer registered documents this year

In 2016-17, a total of 20.46 lakh registrations were logged in, which was lower than the 23 lakh in the previous fiscal

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The real-estate market in the state may be showing a slump as is evidenced by falling registrations of property transactions.

Senior officials said that the department of registration and stamps had registered lesser documents this year compared to the previous fiscal. "By October-end, the total number of documents registered was around 12,54,075 which is marginally lower than the 12,88,527 registered in the same period last year," an official added.

"Real-estate transactions have fallen. SRA and redevelopment projects in Mumbai were held up in areas like the Kurla taluka after the court's ban on new constructions in Mumbai due to the failure in solving the problem of the city's dumping grounds. This led to our revenue being hit as we get around Rs 20 to 30 crore from one such project. A major chunk of our revenues come from conveyance deeds of development projects," he explained.

In 2016-17, a total of 20.46 lakh registrations were logged in, which was lower than the 23 lakh in the previous fiscal. This was largely due to the demonetization of high-value currency notes on November 8, 2016.

"This year, conveyance deeds account for 54.7% of volumes among the total documents registered, followed by mortgages (12.4%), leave and license (10.7%), power of attorney (4.5%) and leave and license (4.3%)," the official said.

Official noted that more sales and purchases of flats had been logged in before June, when the Real Estate (Regulation and Development) Act, 2016 (RERA) came into force. "This led to additional revenue of around Rs 1,000 crore in a month. Hence, the fall in real estate transactions cannot be interpreted as a slump in the real-estate sector," he added.

However, the department, which is the second highest revenue grosser for the Maharashtra government after state goods and services tax (SGST) has something to cheer about. A hike in the ready reckoner rates has ensured a rise in the revenues through stamp duty and registration fees, with Rs 13,711 crore being collected by October-end, compared to the lower Rs 11,854 for the same period last year.

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