Home Sales In Mumbai Region Jump 33% In January
Laborers work on an Indiabulls Real Estate commercial building construction site in the Lower Parel area of Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Home Sales In Mumbai Region Jump 33% In January

Home sales in the Mumbai region surged in January as the stamp duty cut and low rates continue to drive demand in India’s most expensive housing market.

Sales jumped 33% over a year earlier, according to a tracker by developers’ lobby Credai-MCHI. Average value of property sold also rose 14% to Rs 66 lakh.

The past few months have relaid the foundation of the real estate sector, not just in the Mumbai Metropolitan Region but entire Maharashtra, largely owing to measures taken by the state to boost demand during the pandemic, Deepak Goradia, president at Credai-MCHI, said. “Homebuyers have also fully comprehended the importance of owning a house. We expect this strong tide to continue till March and hope to sustain this momentum.”

The stamp duty cut is effective till March and while it rose from 2% to 3% starting January, it’s still lower than 5% prior to the pandemic. The state had slashed the levy to aid the housing sector that was grappling with a prolonged slump even prior to the pandemic. That, coupled with record-low lending rates, aided demand as the city’s wealthy, including Bollywood stars to bankers buying homes.

The stamp duty reduction not only led to higher sales for developers but also increased revenue for the state in December 2020. Sales in January were better than the figures of September, October and December 2020, according to the MMR Property Tracker. The report analysed home sales in eight key locations: Central Business District - Mumbai, Central Mumbai, Central Suburbs, Western Suburbs, Eastern Suburbs, Thane, Raigad and Palghar.

Here are the key highlights from each region:

CBD Mumbai

  • The South Mumbai neighbourhood, one of the most expensive markets, saw renewed interest from the high-net—worth Individuals, according to the report. The number of units sold jumped 48% year-on-year. The average ticket size rose 7% to Rs 1.6 crore.

  • September to January period saw registrations worth Rs 5,543 crore, with the average ticket size touching Rs 2.6 crore in December.

Central Mumbai

  • The region saw a hockey stick-like recovery in sales from September to December, capturing the positive effect of stamp duty reduction, the report said.

  • The value of sales in January stood at Rs 2,173 crore, almost twice the monthly average of value of units sold in the previous three years.

  • 74% more units sold in January over a year earlier.

  • Average value of property sold rose 13% to Rs 2.8 crore.

Central Suburbs

  • Home worth Rs 1,069 crore were sold in January, 71% more than the monthly average of value of units sold in the previous three years. Besides the stamp duty cut, the report attributes this surge to attractive offers and flexible payment schemes offered by developers.

  • 32% year-on-year rise in units sold in January.

  • 38% increase in the average value of property to Rs 2.1 core in January.

Western Suburbs

  • 58% more units sold in January than a year earlier.

  • Average ticket size rose 3%, remaining steady around to Rs 1.1 crore.

Eastern Suburbs

  • The number of property registrations rose sequentially in the September-December quarter, aided by stamp duty cut. Spill-over effect seen in January as online queries and site visits rose, the report said.

  • 71% more units sold in January than a year earlier.

  • Average property value rose 1% to Rs 1.1 crore.

Thane

  • The value of properties registered in December was 78% higher than November and 181% more than September, underscoring the sequentially rise after the stamp duty cut.

  • Online queries and site-visits at project sales offices rose in the Thane market that also covers areas like Bhiwandi, Kalyan, Ulhasnagar and Ambernath.

  • 30% more units sold in January.

  • Average value of the property sold rose 1.1% to Rs 41 lakh.

Raigad

  • This region, considered as an affordable housing market, saw Rs 7,835 crore worth of home sales in September-December.

  • Units sold in January rose 23% year-on-year.

  • Average value of the property sold rose 10% to Rs 37 lakh.

Palghar

  • The value of property sold in January was not higher than the monthly average in the previous three years. December saw a 100% surge, both in the value and the number of units registered, it said. Palghar market also covers areas like Talasari, Boisar, Khodala and Vasai Virar.

  • 7% more units sold in January that a year earlier.

  • Average property value rose 7% to Rs 25 lakh.

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