Home >Brand Post >Mumbai home sales higher than pre-covid levels

Buying your own home has always been a big part of our Indian ethos. It is as ingrained in us from childhood as is respecting our elders. No other nationality pursues the dreams of getting a job, getting married, and getting your own house with as much passion and parsimoniousness as we Indians do.

This quest is being played out in Mumbai too despite its real estate being perceived as the most expensive in the country. Today, the ‘Mumbaikar’ who has come to the city in pursuit of his/her career aspirations has never had it so easy to own a house here with increased affordability and interest rates hovering around 6.5-7% for a home loan. Additionally, they have varied home buying options across the price range from affordable to luxury from the top tier developers with modern amenities. For many potential homeowners the gap now between paying high rent and paying a loan EMI is significantly narrowed or in some cases wiped out completely. Thus, making this the best time to buy a home in Mumbai.

This increased affordability coupled with the pandemic induced realization of the need for bigger houses has fuelled a home buying phenomenon in Mumbai, with the market has seen an increased demand of 10% over the previous quarter for two and three BHK homes in the city in April to June quarter 0f 2021 as laid out by the latest Magicbricks PropIndex Report Q2. The two and three BHK home segment in Mumbai accounts for 70% of the total demand in the city. This quarter saw the demand increase by 18% over the same period last year.

A recent study by Propstack, also pointed that the stamp duty collections in Mumbai, the conclusive evidence of an actual property sale are almost at par as pre-covid19 levels. The analysis shows that stamp duty collections in the Mumbai BMC region (stretches from Churchgate to Dahisar on the Western line and Colaba to Mulund on the Central side of the island city), for June 2021 at 420 crore was 93% of that of June 2019. In terms of volumes of the number of units registered, the analysis reveals that 39% more units were registered in June 2021 as opposed to 5,640 units in June 2019. From a value perspective too, June 2021 saw an increase of 11% with properties worth 8,400 crore being sold from 7,542 crore in June of 2019. These statistics incontrovertibly point out to a buoyant home buyers’ confidence which is only going to increase as the trend goes.

This trend is in line with the trend established by an earlier Anarock report of Q1 2021, which analyses data of a bigger MMR area as compared to the Mumbai BMC region. Anarock is India’s leading independent real estate services company. This report studying real estate trends in top-7 metros in the country shows that the sale of residential units in MMR was higher by 16% than the Q4-20 period and higher by 46% on a y-on-y basis. In addition, the buyers have shown a marked preference for properties developed by tier-1 developers and in the process willing to pay a premium over the market price. There is a two-fold reason explaining this behavior, one being that even with the MAHA-RERA deterrent, tier-II &III developers have struggled to deliver their projects on time without cost overruns. The second reason is the assurance of quality and the amenities provided by the tier-1 developers.

The major constituent which is fulfilling the aspiration of buying a house of their own in Mumbai a real possibility is the lowest ever interest regime prevailing in the current times. The increase in home buyers’ confidence is linked to an increasing portion of the populace getting vaccinated. This vaccination is seen blunting the effects of the second wave and a conviction that the third wave will not be as economically severe as the earlier two waves. It has induced a rejuvenated demand better than pre-covid levels. According to experts, this environment wherein the housing demand is set to reign firm will soon result in firmer pricing too making this the most opportune time to buy a house in Mumbai.

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