Housing sales were been driven by bottomed-out property prices, limited-period stamp duty cuts, developer discounts and lowest-best home loan rates
NEW DELHI: The Mumbai Metropolitan Region (MMR) has emerged as one of the most buoyant residential markets during the first three months of the year, even as covid-19 cases continued to pile up.
The area saw the highest yearly decline of 8% in total unsold housing stock o 1,97,040 units this year from 2,13,180 units in 2020. It was the highest yearly decline of unsold housing inventory in the last seven years. In previous years, MMR’s stock either rose on a yearly basis or declined by no more than 3%.
Notably, the overall stock fell despite ample new supply hitting the market during this and the preceding quarter. MMR saw 14,820 new units added in the March quarter, the highest among the top seven cities. Yet, robust sales during the quarter and the December quarter significantly dented inventory in the region.
Housing sales were been driven by bottomed-out property prices, limited-period stamp duty cuts, developer discounts and lowest-best home loan rates.
"A reduction in overall acquisition cost by anything between 5-15% made a huge difference in buyer sentiment. Low home loan interest rates and developer discounts, and timely intervention of the government by the way of stamp duty reductions and a 50% cut in premium charges also helped the region get its mojo back even during covid-19," said Anuj Puri, chairman, Anarock Property Consultants.
Around 20,350 units were sold in MMR during the March quarter, of which 68% (13,750 units) were sold in Mumbai, 18% (3,650 units) in Navi Mumbai and 14% (2,950 units) in Thane.
Thane reported the highest yearly decline of 14% in Q1 2021, followed by Navi Mumbai at 12% and Mumbai with a 5% fall. Mumbai saw the least decline among the three despite increased housing sales because it was the only city in the region that added new supply in the first quarter this year and the preceding quarter.