Mumbai Property Registrations Scale New Peak, Annual Deals Surpass 1-Lakh Mark
Mumbai, the country’s biggest property market, has sustained its growth momentum as homebuyers continued to acquire properties on the back of record-low interest rates and offers from realty developers.
The market has scaled a new 10-year peak as it surpassed the mark of 1 lakh registrations in a year.
Interestingly, the pace of property registration has continued even without the extension of lower stamp duty benefit.
The property market of the country financial capital has recorded over 5,553 registrations of deals in just three weeks of December after witnessing over 7,582 registrations in festive month of November, showed data from the Inspector General of Registration, Maharashtra.
The state exchequer has fetched over Rs 549 crore and Rs 421 crore revenue from stamp duty on these property transactions.
The registration activity in both September and October had also scaled a new monthly peak prior to this and the performance in so far indicates the continuance in sentiment buoyancy.
“The pandemic has increased the demand for housing from all segments. Homebuyers have also been encouraged by the low interest rates and recent stamp duty cut which has bolstered government revenues and the sagging property market,” said Sandeep Runwal, president, NAREDCO Maharashtra and MD, Runwal Group. “Homebuyers realized the best time to buy real estate is now and to keep up the impetus to the housing market the government should continue its regime of low rates and taxes.”
Property registrations during January-November period are 122% higher from a year ago, while the government has earned a revenue of Rs 5,351 crore between January to November 2021, showed data from Knight Frank India.
“The consumer sentiment in the Mumbai housing market remains strong. The growth rate has moderated when compared to the year ago period when the market was buoyant on account of the lowest applicable stamp duty rate window. The demand enablers in the form of low house prices, low home loan interest rate and new project launches continue to entice homebuyers,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India.
During the pre-pandemic period of November and December 2019, Mumbai’s property registration number was 6,433 and 5,574 transactions, respectively. Revenue from stamp duty, however, stood at Rs 429 crore and Rs 542 crore for November and December 2019, respectively.
The government had given a four-month window for registration of deals if the stamp duty was paid before the March end. That window also closed in July, with Mumbai recording the highest number of property registrations in 10 years, as buyers took advantage of a lower stamp duty rate offered by the state government to spur sales amid the Covid-19 pandemic.
The following month, in the absence of reduced stamp duty, property registrations had declined.
With the central bank maintaining its stance on low policy interest rate, and developers providing attractive offers, sales trajectory has picked up again with monthly sales after that surpassing even pre pandemic levels seen in 2018 and 2019.
With positive consumer sentiments, low interest rates, improved consumer perception of home ownership will get a boost from the festive season leading up to Diwali. Developers too have aligned new project launches to benefit from the upbeat homebuyer sentiment and these factors are expected to contribute to sales momentum that the Mumbai residential market will witness during this period.
Courtesy : https://economictimes.indiatimes.com
