Why you will lose your dream home over the waiting game in March 2022! vrajtiara.com

Mumbai, being the most expensive real estate market in India, has recently witnessed an explosive jump in the residential sector, in the year 2021. In a megacity like Mumbai, where space is at premium corporate groups, business tycoons to celebrities showed a buying frenzy to grab premium luxury flats in Mumbai such as 3 BHK, 4 BHK & 5 BHK flats in South Mumbai, in exclusive neighborhoods of Worli, Juhu, and Bandra. Alongside a home purchased, there is also a surge in demand for car parking space.

With the recent announcement by the state government to hike the stamp duty by 1% from the next financial year, buying flats in Mumbai is likely to get costlier. The government’s two-year concession on stamp duty ends in March 2022. The duty will rise by 1 percent to an actual rate of 6 percent of the agreement value from the current 5 percent. Moreover, the stamp duty on the gifting of property to a blood relation will see an enormous rise from just ₹200 to ₹1 lakh (considering the property cost of ₹1 crore). The ₹200 stamp duty was a base price which will be hiked to 1 percent of the property value. As of now, the stamp duty on a gift of a residential flat to blood relations is merely ₹200. But from April 2022, the same transaction will attract a 1 percent stamp duty on a pro-rata basis, considering the flat’s market value.