Mumbai sees 67% jump in property registrations in November2 min read . Updated: 09 Dec 2020, 04:00 PM IST
- A total of 9,301 units were registered in the metropolitan last month
- The augmented sales have been attributed to a stamp duty cut of 300 bps (basis points)
Riding on the back of stamp duty cuts and the festive season, the residential sector in Mumbai has recorded the highest-ever registrations in the month of November over the last nine years. A total of 9,301 units were registered in the metropolitan last month.
The figures show a 67% year-on-year (YoY) rise over same month last year, according to Knight Frank India, a leading international property consultancy.
This strong growth of 17% month-on-month (MoM) in November 2020 comes after a robust 42% MoM growth during October 2020 and massive 112% MoM growth during September 2020, when sales of residential property started to show an upward trend after months of slump due to the Covid-19 induced lockdown.
The augmented sales have been attributed to a stamp duty cut of 300 bps (basis points). Most developers have offered to absorb the remaining 200 bps which is resulting in huge savings for the homebuyer. This is in addition to the festive season of Diwali and reduction of home loan rate to historic lows.
Other measures by developers such as deferred payment plans, indirect discounts and offers to negotiate on the final price of the apartment have helped entice homebuyers.
Mumbai has witnessed a cumulative residential sale of 22,827 units after the stamp duty cut during September-November 2020. The monthly run rate in this period after the stamp duty cut is approximately 135% or 1.35 times the monthly average of 2019.
"Lower stamp duty, interest rates, easy liquidity coupled with attractive offers, stamp duty waivers by developers and pent demand has led to a stellar last few months. As expected, November sales data helped by festive season buying is the highest in nearly a decade, in terms of the number of units sold," said Krish Raveshia, CEO at Azlo Realty.
Raveshia added that high traction in sales is expected to continue in 2021 with all factors in favour of growth. "The interest rate and liquidity are likely to be favourable in the short to medium term for business and investments as per the indication by the RBI," he said.
Many families have come to realise the need of additional rooms in their houses, which has led to an entirely new demand of 'upgrades' in addition to the sales.
Fence sitters who have been actively scouting for properties over the past few years are also finding this the right time to purchase their dream homes.
It is important to note that even after the stamp duty cut in September 2020, the state Government’s revenue collections from stamp duty have increased to ₹2,328 million in Oct 2020 and ₹2,879 million in November 2020.