Tamil Nadu’s revenue from stamp duty and registration fees was ₹1,064.62 crore in September this year, a tad higher than ₹1,056.17 crore in the same month last year.
This is the second straight month of positive growth since the lockdown was imposed to curb COVID-19 in mid-March, indicating a rebound in the demand for property.
In August this year, the revenue from stamp duty and registration fees rose to ₹792.65 crore from ₹786.84 crore in the same period last year, according to the data from the Department of Registration.
In April this year, the revenue from stamp duty and registration fees had tanked almost 97% to ₹23.61 crore from ₹761.81 crore in April 2019, amid the total lockdown.
The declining trend continued in May, June and July. The revenue growth from stamp duty and registration fees is the proxy to real estate demand.
A senior official said the property demand had come back strongly in August and September.
“There was a pent-up demand amid the complete lockdown in April and May, which brought activities to a stand still. With the number of relaxations allowed and more number of auspicious days, the revenue has been positive in August and September [when the e-pass system for inter-district travel was scrapped],” officials of the Department of Registration said.
The number of documents registered increased to 2,98,956 in September this year from 2,38,978 in the same period last year. In August this year, the number of documents registered rose to 2,17,070 from 2,00,649 in the same period last year.
Sanjay Chugh, city head-Chennai, Anarock Property Consultants, said the reduction in interest rates for home loans and incentives offered by builders had helped to revive the property demand. “The pent-up demand is getting reflected now. With interest rates being lower and incentives from some quality builders in the market, it may be the right time to buy a house,” he said.
Sridharan, chairman of CREDAI, Tamil Nadu, said the demand had come back strongly. “The lockdown relaxations, especially the opening up on Sundays, have increased site visits. People who were waiting on the sidelines are now actively considering buying a house, and the inquiries have gone up significantly,” he said.
But he called for a reduction in the registration fee and stamp duty, which is at 11%.
CREDAI has made a representation to Chief Minister Edappadi Palaniswami and Deputy Chief Minister O. Panneerselvam (who holds the Housing portfolio) to bring down the registration fee and stamp duty to 6%, without any further change in the guideline value, which has already been reduced by 33%.
Mr. Sridharan pointed out that the reduction in the stamp duty had a positive impact in Maharashtra. “The reduction in the stamp duty will boost home-buying, as the benefit directly goes to the consumers. This will improve the volume of registration, which in turn will increase revenue to the government.”