Property market surged in 2015

The government data further revealed that compared to Greater Mumbai, the suburban registered more number of properties as well as generated the revenue.

Despite a roller coaster ride, in comparison to the year 2014, the property market definitely showed a significant surge in 2015.

According to the state government stamp duty and registration department data, in January 2015, government earned Rs 402 crore against Rs 332 crore in 2014. Similarly, in 2015, Rs 332 crore was collected in February, Rs 457 crore in March, Rs 431 crore in April, Rs 342 in May, against Rs 297 crore, Rs 366 crore, Rs 335 crore and Rs 383 crore in February, March, April and May of 2014.

A similar trend was witnessed in further months as well. In July 2015, the department received Rs 486 crore against Rs 377 crore in 2014, while in August 2015, the government earned Rs 402 crore against Rs346 crore in 2014. In September, October and November of 2015, it registered Rs437 crore, Rs 356 crore and Rs 296 crore respectively, against Rs 426 crore, Rs 295 crore and Rs 325 crore in September, October and November of 2014.

The government data further revealed that compared to Greater Mumbai, the suburban registered more number of properties as well as generated the revenue.

Pankaj Kapoor, MD, Liases Foras, a property research firm, said this was a good sign, proving that the market was improving. “Even developers have started launching new projects. Earlier, they were holding back in wait of the proposed development plan (DP) and housing policy. They, however, got the hint that nothing major was likely to change. Besides, developers have to dispose of the inventory, otherwise it starts piling up,” he added.

A market insider said 2014 was an election year, so most builders, politicians and other stake holders parked their funds in the polls. “That created a fund crunch and affected the property market adversely. Now elections are over, so that money is returning to the property market. This has reflected in the rise of the market,” said a source, on the condition of anonymity.

Meanwhile Anand Gupta, president of the Builders Association of India, said a rise in the land rates and taxes has resulted in a rise in revenue for the government. He said most transactions were happening in the resale apartments, not in fresh projects. “There is a glut in fresh launches booking, but we are hopeful of reviving the market. It will be more robust in 2016 than in 2015,” he added.