Home >Industry >Infrastructure >Mumbai sees huge growth in property sales; housing units worth 11,000 crore booked in Feb

Mumbai, the financial capital of India saw huge surge in property registration numbers in February, thanks to stamp duty cut by the Maharashtra government. Over 10,000 housing units were registered in Mumbai in February, the data revealed. To boost the ailing real estate industry amid coronavirus pandemic, the Maharashtra government in August announced to cut stamp duty on housing units from 5% to 2% until 31 December, 2020. From January 1 to 31 March, 2021, the stamp duty charges were reduced to 3%.

The concession in stamp duty charges led to huge growth in property booking in Mumbai. At least 5,597 properties were booked in September while number increased to 7,929 in November, according to Inspector General of Registration (IGR) Maharashtra data. November witnessed registration of 9,301 properties, December 19,584, January 10,412 and February 10,170 properties, the government data showed.

"The consumers have grabbed the golden opportunity to purchase properties in the last few months as the bank loan interest rates are at an all-time low coupled with great property prices and reduced stamp duty benefits," said Ashok Mohanani - President, NAREDCO Maharashtra.

Continuing the momentum, "We anticipate robust sales this month too which will be equivalent to December 2020 as the consumers will try to avail of 3% stamp duty benefit before 31 March," NAREDCO President said.

In February 2021, properties worth 11,745 crore were sold in Mumbai, up by 34% year-on-year, according to data shared by Propstack. The total value of properties in September stood at 9,025 crore; 11, 640 crore in October; 14,395 crore in November; 34,025 crore in December 2020; 10,170 crore in January, Propstack mentioned.

On outlook in March, Ram Naik - executive director, The Guardians Real Estate Advisory said, "The sector is expecting a windfall of registrations in the month of March 2021, in line with the response received in December 2020. The month is expected to end with a registration number in the range of 10,000-14500. The growth will be an upwards of 100-150% year-on-year, as the city abruptly entered into a lockdown same month last year."

"Developers are pinning hopes on fence sitters who are expected to close their transactions and avail of the 3% stamp duty benefit until 31 March. Post April 2021 the market is expecting the affordable housing industry to deliver handsome numbers as a result of the suppressed demand that has been unable to enter the market," he further added.

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